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Many thanks indeed. May i just ask then does the product vary if it goes own brand, you know like more % of a couple of the cheaper ingredients, maybe more sauce less pepper in a Sharwoods equivalent etc.
Can you see a time where you will be back in?
I sold half at Ā£1.20 ish last week expecting to buy back in at Ā£1.05-.07 ish, but it seems pretty solid.
I am holding though because I still feel there will be a take over bid eventually, also i am keen on the business long term, if it stays stable for a few weeks i will increase holding again, whether it is 1.10 or 1.20 ish, just need this next few weeks to re assure me, we currently are just about the right value price, whether there is good or bad news, i feel it will ride through it. Fingers crossed.
Also i can't see much undervalued personally, with out big risk
Hi Theleather1
Yes, Premier used to make own label products and I am sure that they still do. Back in my day 15 to 20 years ago they would use spare capacity in the factories to make own label products. It was always something that was second to brands because the margins are far less.
More recently Premier have concentrated on brands and that has been one of the reasons for the improved profitability.
Re own label vs premium, couldnāt agree more! And It is the Aldi and Lidl who have been winning during the last 12 years of reduced living standards- at least for the masses. The current environment will accelerate that- just like COvid accelerated internet / technology adoption. I suspect the super premium is also winning, but would love to have some evidence to support that.
In my day, no Loyd Grossman own label equivalent made by PF.
Good to see some different views being discussed here on some potentially polarising topics. If only society took this approach!
Some of the other boards on LSE go mad over the slightest thing. You may have seen that i once referred to posts by Kallumama on here, used to be backed up with info, sometimes different. He moved to ASOS and IMHO was torn to shreds.
Just checked and he has not posted for months!
Any way Dogger , am interested to see you are an ex employee of PFD, I used to think go woke go broke, but now the shift has changed and actually it will be worth while to promote it.
My biggest concern in the current climate is the expected shift from premium brands to own label.
I actually think prem brands will still sell here in numbers, but can you confirm please if PFD make many own branded products for others?
Thanks.
Thanks for your views Billynā¦.I appreciate it.
Fair question Dogger. The baseline that employees who feel valued are more motivated is not in dispute - hope. As is the current labour shortage. I am seeing- at the younger group, there is a demand for a more inclusive environment- I guess those who rail against woke describe them as āsnowflakeā. Down with inclusivity! At the upper age group, about 700k people have left the job market innsearch of more balanced life. That is why we have both high employment and less people in employment. Donāt think thatās a difficult concept, but appreciate for some itās a bit too complicated. We need both of these groups in the labour - retain them and attract them.
You are right Billyn, I donāt suffer from any kind of āismā, but I am interested in your view that this stuff āattracts and retains employeesā. I have been out of the workplace now for ten years (I used to work for PFD). Is there evidence that that is true ?
Even if you are against āwokeā, which generally means against anti racism, anti sexism, but Iām sure thatās not youā¦. , in a time of labour shortage, any activity which attracts and retains employees is a good thing.
I agree with you about the current management team. They have done very well over the last few years (helped by covid), to reduce debt and sort out the pensions.
I am however disappointed that they feel it necessary to add overheads to the business by following this virtue signalling garbage.
Yes the ESG brigade will love this ! That said the current Management have lifted PFD out of the āDarby Doldrumsā so no complaints from me. Fully expect to exit in a few years at a much better price !
Mr Kipling maker Premier Foods is to offer 'trans inclusivity' training to all staff, in a further shake-up of workplace policies.
Premier Foods, which also makes Bisto and Batchelors brands, is launching "new modern workplace policies" which include providing online training for all 4,000 staff on menopause and how to cope with it, as well as practical tips for those working with colleagues going through menopause.
Menopause champions are set to host regular "menopause cafes" for colleagues to discuss their experiences, it said.
Iām out !!!!!
And the share price takes a hit!
What can you do?
Well I am holding here, would buy more if I had the available funds!
Premier Foods wins ratings upgrade from Moody's
7th June 2022 21:48
Premier Foods PLC - St Albans, England-based food manufacturer and owner of grands such as Bisto, Sharwood's and Mr Kipling - Wins a corporate family rating upgrade from Moody's. The New York-based financial services company upgrades its rating to Ba3 from B1 and its probability of default rating to Ba3-PD from B1-PD. Also changes its outlook to stable from positive.
Moody's says the upgrade reflects the company's "resilient performance" in the year ending March 31 in the context of rising input costs and supply chain frictions.
Daniel not David
David Wosner to leave as Oasis runs down its holdings .Selling to Nissin ps://www.thegrocer.co.uk/mergers-and-acquisitions/nissin-strengthens-premier-foods-partnership-as-it-buys-chunk-of-shares-from-activist-oasis/667858.article
Interesting times
Thanks Me12345 that explains what is going on.
I guess it makes it even more unlikely that a bid will come from anywhere else when Nissin have such a substantial holding.
Signing of Share Purchase Agreement
to Acquire Additional Shares in Premier Foods plc
On May 24, 2022, Nissin Foods Holdings Co., Ltd. (President & Representative Director CEO, Koki Ando; āNissinā) entered into an agreement to acquire 3.9% of shares in Premier Foods plc (āPremier Foodsā) from Oasis Investments II Master Fund Ltd. (the āAcquisitionā).
Nissin and Premier Foods entered into a strategic alliance in March 2016 and have since built on our respective strengths to collaborate on various fronts. For example, Nissin has leveraged Premier Foodsā capabilities to distribute Cup Noodles, Soba, and other brands produced and sold for the UK & European markets, and Nissin has co-developed and co-manufactured Premier Foodsā Batchelors Super Noodles pots products. The Acquisition is intended to further strengthen the existing strategic relationship and to contribute to continued value creation at both the Nissin Foods Group and Premier Foods.
Upon completion of the Acquisition, Premier Foods is expected to be treated as an equity method affiliate of Nissin for accounting purposes. Financial impact on Nissinās consolidated earnings from the Acquisition is still under review, and additional disclosure will be made if deemed required.
Details of the Transaction:
1. Number of shares acquired
2. Percentage of shares acquired
3. Total percentage of shares to be held
upon completion of the Acquisition
33,550,000 shares 3.9% *
22.9% *
* Based on 862,999,357 ordinary shares outstanding as at 2022/4/30.
Not sure what is going on here. Oasis used to have a much bigger holding than 1.8%.
I am wondering if in fact they have reduced their holding to 1.8% and sold a load of shares to Nissin. If they had gone from zero to 1.8 % they wouldnāt have to notify that would they ?
Itās all very confusing.
Now Oasis Investments II Master Fund Ltd has taken 1.8% holding, Do they know something is about to happen or are they both looking long term?
You are right Jed, it doesnāt make a whole lot of sense. Unlessā¦..they know something about future trading that we donāt yet know. Obviously they have a seat on the board so are very much up to speed with what is going on. Also this will have been their first opportunity to deal in the shares for a while because of the closed period leading up to the results announcement.
Wow all of a suddon Nissin foods ups it's holding to 23%. If it now tends to make a full bid why didn't it move when the SP was 50p ish. Doesn't make any sense.
I was hoping the idea of PFD being take over target had gone. If it was not wanted when the share price was low why pay more now? Onwards and upwards I hope . Maybe buy a small bakery abroad to produce Mr Kipling cakes ?
I agree with T2R
forget M&A which is cause of all the problem for the past 15 years....
What's needed good old boring divi growth ( paying 4 - 5%); this will encourage more divi inclined fund managers to invest in us.
Also encourage one of the big player to take us over :)
It was M&A that put us into zombie land in the first place.
Maybe we will be better suited as a takeover target. Where have the Japanese gone?