Tuesday, 02 December 2008

Food firm is still on track

NORTHERN Foods, the food producer which owns Cavaghan & Gray, announced a trading update this morning.

The group said that it is on track to meet full year expectations as total revenue grew 6.5 per cent during the 26 weeks to September 27.

Revenue growth was driven by a 5.6 per cent increase in average selling price which helped offset higher input prices.

Overall, volume dropped by 1.7 per cent. Northern Foods did comment that full year profit tends to be weighted towards the second half of the year and that trading conditions remain difficult.

The shares opened up 2 per cent at 61.75p in early trading.

The wider market, recovered some of yesterday’s fall, by opening up 108.67 at 4697.86.

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