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March 31, 2010

ICELAND: Bakkavor FY losses narrow

Iceland-based Bakkavor, one of the UK's largest producers of convenience food, has booked narrowing full-year losses as the company improved its operating profit in 2009.

Iceland-based Bakkavor, one of the UK’s largest producers of convenience food, has booked narrowing full-year losses as the company improved its operating profit in 2009.

Bakkavor reported an annual loss of GBP11.8m for 2009, compared to a loss of GBP154.2m a year earlier.

The company suffered higher finance costs – which jumped 56% – but the business improved its operating profit, driving it to GBP85.4m in 2009 from GBP22m in 2008.

Turnover was up 2% to GBP1.65bn and Bakkavor CEO Ágúst Gudmundsson said the company had enjoyed sales growth within key businesses in the UK.

“Our 2009 results demonstrate a strong improvement in profit delivery, good sales growth in our key UK fresh prepared foods business and a return to significant cash generation. After two years of considerable effort to return the business to more expected performance levels we are very optimistic about our future prospects,” Gudmundsson said.

During the fourth quarter of the year, Bakkavor also secured a refinancing of its GBP316m debts. Some 46% of the debt will be turned into share capital; the remaining debt will become a “convertible debt instrument” to mature in 2014.

Click here for the original release and click here for more insight into Bakkavor’s results.

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