(Alliance News) - Bakkavor Group PLC on Monday reported growth in first half revenue grew amid a resilient performance in challenging period.
The FTSE 250-listed company - which provides fresh meals such salads and desserts - said it performed in line with expectations in the six months ended June 29.
Pretax profit fell by 59% year-on-year to GBP19.5 million from GBP47.1 million, largely attributable to administrative costs rising by 16% to GBP178.2 million from GBP154.1 million in the first half of 2018.
Revenue rose by 1.4% to GBP923.0 million from GBP909.9 million. The company said a weaker sterling offset like-for-like growth.
On a like-for-like basis, excluding contributions from acquired and sold businesses, revenue rose by 2.0% to GBP877.9 million from GBP860.9 million.
Discontinued business include the the Anglia Crown unit which it sold In July 2018 and a Lincolnshire based meals company that was closed in April.
Bakkavor acquired the Blueberry Foods dessert business from Samworth Brothers Ltd in May for an undisclosed amount and purchased Haydens Bakery for GBP9.6 million in cash and GBP2.4 million of existing finance leases in September 2018.
In the UK alone, revenue rose by 0.3% to GBP816.1 million from GBP813.5 million. The company UK business has "never been stronger", the company added.
Internationally, revenue rose by 17% to GBP109.5 million from GBP93.8 million due to a weak sterling.
Bakkavor declared a flat interim dividend of 2.0 pence per share.
The company conceded that trading so far in the second half has been "subdued" but it does forecast an uplift in performance, driven by the impact of its new businesses. It expects a performance from its international business broadly in line with 2018.
Chief Executive Agust Gudmundsson said: "During a challenging period, I am pleased by the resilience we have shown across the business to deliver a solid first half performance. While the trading environment in the UK is still uncertain, we remain positive of our long-term prospects and the demand for fresh prepared food.
"Our UK operations have never been stronger and we are the clear market leader across all four of our core categories. I am encouraged by developments made across our US business; improving efficiencies, streamlining our customer proposition and building sales across new sites. Our business in China continues to go from strength to strength, expanding both our customer base and product offering. Looking further ahead, we believe that our strategy, combined with our scale and expertise, leaves us well placed to capitalise on future growth opportunities."
Shares in Bakkavor were 0.9% higher at 108.40p apiece in London on Tuesday morning.
Bakkavor (BAKK)