Northern Foods reports modest profit rise while it plans job cuts
FOOD manufacturer Northern Foods said it was on track to meet market expectations for the full-year and will invest £26.5m in its Fox’s biscuits brand over the next 18 months.
The group, which makes Goodfella’s pizza and is Britain’s biggest maker of Christmas puddings, reported a pre-tax profit of £12.9m for the six months to 26 September, modestly up from £12.7m the year before.
Chief executive Stefan Barden said: “Market conditions remain competitive but at this stage of the year, our sales and profit expectations for the current financial year remain unchanged, and in line with market expectations.”
Northern Foods also announced plans to axe around 300 jobs due to the introduction of new automated technology at its Fox’s Biscuits plants.
The robotic machinery will cost the group £26.5m but the group said the investment will generate operating efficiencies and improve margins.
Last year Northern Foods set out a £50m high-tech facility, which would have led to the closure of one of the two sites and the loss of up to 1,000 jobs – but it stalled plans because of rising costs due to the weak pound.