Strong trading for Northern Foods

Highlights of the update, which covers the 13 weeks ending 28 March (fourth quarter) and 52 weeks to the same date (full year), include the group's underlying sales for the full year which grew by 4.7%, reflecting price increases of 4.4%. The fourth quarter underlying revenue for chilled foods was 12.2% ahead of the comparable period. This division benefited from the introduction of value ranges of pizza and sandwiches. The full year chilled underlying sales grew by 5.5%, with continued progress in ready meals over the winter period, driven by strong repeat purchase rates. Meanwhile the bakery division grew by 10.4% during the same period, as well as frozen foods which were up 2.2%. Stefan Barden, chief executive of Northern Foods, said: "In a tough market, Northern Foods is trading strongly and we anticipate that out full year profit before tax will be in line with market expectations. "We have adapted the business successfully to the new retail environment and we are benefiting from our operational and financial strengths. We are well positioned to continue our good progress." The BBC have also reported today that the Leeds based company wants to merge its factories in Batley, West Yorkshire, and Uttoxeter, Staffordshire. They were expected to choose which site would close this month, but now says it will make the decision next year after a "rigorous" evaluation.