Premier Foods (PFD)

Sector:

Food

Index:

FTSE Small Cap

43.95p
   
  • Change Today:
    -1.65p
  • 52 Week High: 47.00p
  • 52 Week Low: 18.46p
  • Currency: UK Pounds
  • Shares Issued: 848.26m
  • Volume: 2,975,037
  • Market Cap: £372.81m
  • RiskGrade: 361

Premier Foods calls off sale of Ambrosia brand

By Michele Maatouk

Date: Friday 15 Feb 2019

LONDON (ShareCast) - (Sharecast News) - Mr Kipling, Bisto and Oxo owner Premier Foods has called off the sale of its Ambrosia brand.
The company, which first announced back in November that it was mulling the sale of the custard and rice pudding brand, said it has been in detailed talks with a small group of potential buyers since the new year.

However, it said the process "will not result in a satisfactory financial outcome" given the "present business climate".

"As a result, these discussions have now concluded."

Premier Foods said last year that the disposal would help the company fund the acceleration of its turnaround and focus on areas of the business that have the best potential for growth.

At 1220 GMT, the shares were down 3.5% to 35.90p.

Paul Hickman, analyst at Edison Investment Research said: "We take this to mean that the price would not be such as to contribute to its objective of reducing the borrowing ratio below the targeted 3.0x net debt/EBITDA by March 2020. As a result, more now depends on the achievement of the other strategic objectives, namely revenue growth, cost efficiencies, innovation and its logistics transformation programme."

Russ Mould, investment director at AJ Bell, said the company's failure to sell Ambrosia leaves it in a "sticky mess".

"Reports that the business could fetch more than £100m had raised hopes that Premier Foods would get a much-needed cash injection to help reduce its significant debts and have money to reinvest in the best-performing parts of the business.

"Being stuck with the custard maker now means Premier Foods may have to look elsewhere in its cupboard to see if there is anything of value to offload. There may be a temptation to sell some of the strongest brands in its portfolio to get a financial lifeline, yet that could damage the business longer term if it gets rid of something that has been central to the company's success.

"Companies don't want to get rid of their crown jewels but sometimes they think too short-term in nature and are guided by quick gains and, by doing so, lose long-term benefits should they have kept their best assets."

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

Premier Foods Market Data

Currency UK Pounds
Share Price 43.95p
Change Today -1.65p
% Change -3.62 %
52 Week High 47.00p
52 Week Low 18.46p
Volume 2,975,037
Shares Issued 848.26m
Market Cap £372.81m
RiskGrade 361

Premier Foods Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
75.20% above the market average75.20% above the market average75.20% above the market average75.20% above the market average75.20% above the market average
86.21% above the sector average86.21% above the sector average86.21% above the sector average86.21% above the sector average86.21% above the sector average
Price Trend
80.75% above the market average80.75% above the market average80.75% above the market average80.75% above the market average80.75% above the market average
73.33% above the sector average73.33% above the sector average73.33% above the sector average73.33% above the sector average73.33% above the sector average
Income Not Available
Growth
9.96% below the market average9.96% below the market average9.96% below the market average9.96% below the market average9.96% below the market average
40.00% above the sector average40.00% above the sector average40.00% above the sector average40.00% above the sector average40.00% above the sector average

What The Brokers Say

Strong Buy 4
Buy 0
Neutral 0
Sell 0
Strong Sell 0
Total 4
strong_buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Premier Foods Dividends

No dividends found

Trades for 29-May-2020

Time Volume / Share Price
16:53 77,264 @ 43.95p
16:35 2,307,620 @ 43.95p
16:29 43 @ 45.30p
16:29 2,344 @ 45.30p
16:29 812 @ 45.30p

Premier Foods Key Personnel

CEO Alex Whitehouse
CFO Duncan Leggett

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