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This extract is from the last annual report. Guess it refers to the Premier side. Wouldn't have thought they'd take any future 'payment holiday' , preferring to maintain a strong surplus position. My thoughts only though!
The Group expects to contribute between £4m and £6m annually to its defined benefit schemes in relation to expenses and government levies and £37-39m of additional annual contributions to fund the scheme deficits up to 2 April 2023
Hi green 555, the pension schemes were merged [3 of them - RHM, Premier and Grocery] in 2020. As the RHM scheme were/are in a healthy position, there isn't an 'overall' deficit. RHM surplus position overrides Premier's deficit. Last report stated overall surplus of £945m. Unsure of your speculative question sorry.
Hopefully it is. PF reported some weeks back about benefiting from more home cooking as inflation increases, guess this will only increase further. Also some new product development lately eg Ambrosia entering the breakfast market with 'ready to eat oats'. Big challenge will be cost control/pricing. Wheat has taken a hit with Ukraine being the 'bread basket' of Europe and currently the wheat is stuck in Ukraine. Also, with recent hot weather yield for the UK/Europe will be compromised increasing prices further. If Ukraine/Russia can agree to get the wheat out for export then that news would be positively received in the world market pricing. Please report only good news Dogger!
Hope this link works
https://www.ft.com/content/4d5e64d1-480f-48dd-8384-4d36ae499d7e
https://c.newsnow.co.uk/A/1068482138?-22099:9683
Interesting article regarding future cooking and eating habits. All good for PF.
For those that can wait, time will be our friend. I also have a holding in Premier Foods and so am relating this drop to what I experienced back in Oct. Outstanding half year results posted - further debt reduction, free cash increase, 14th Qtr on the bounce in performance beating figures, pension issues resolved, hint of future dividend. Early morning showed a high of 109, over the next 24 hours it fell 20-25%. No rhyme or reason apart from profit takers - it has shown an incredible increase during 2020. The SP has now gradually recovered to 110 today. 3rd Qtr results due nest Tues. - again a positive report is expected. Both companies have solid fundamentals with a positive trading outlook. No reason why Boo doesn't recover to a deserved higher SP - just may take a few weeks. I await in anticipation for Tues!!
The Gore Group weren't big on investing into the mills/bakeries when I worked on the Milling side. This slightly lower than expected figure may be a reflection on this and the bakeries 'general health'. Bearing in mind what's already been posted re a net figure of 'loan notes/interest'.
http://news.sky.com/story/endless-bakes-oven-ready-deal-for-hovis-after-bidding-war-12123445
Agree with your sentiments CEREUS. Hovis has been around since 1886 - comes from the latin Hominis Vis - Strength of Man! It was only a brown wheatgerm loaf for many years. There's a lot of heritage in this name. A while back Premier saw the benefit in the branding and now we have Hovis White, Hovis Wholemeal, Hovis Granary. Hovis used to bake such lines as crumpets, muffins, pancakes, scones, finger rolls, burger buns. For bakers these morning lines are usually quite profitable. There's other bread products they could consider nowadays as well. When they stopped baking these lines to focus on the core product - bread, they also closed down the relevant bakeries and plant and machinery. The challenge would be to convince them to reinvest to produce and deliver. Alternatively could licence out to quality independent bakeries. With their increase in market share from 20 to 22 %, GP increase about 5% - and now eating at home more, you have to think there are opportunities they could explore. May drop them an email Kallumama. BTW Ridley Scott directed the 'Boy on the bike' advert - Gold Hill in Dorset - not up North at all.
My first post also! Firstly, thanks to all sharing your knowledge in this chat - and to Kallumama for your spreadsheets and insight into PF! My glass is still half full. I worked for Rank Hovis on the commercial side for many years [until sadly the Milling side closed down 2018- milling since 1875]. We did use predominantly UK wheat and 90% is still probably about right. I'm flagging up a potential challenging time for Hovis - this year's harvest [August] will be low in terms of quantity and there'll be a Q on quality bread making wheats. The Autumn saw too much rain for good planting, some farmers waited for this Spring for planting - too dry! The result has been 25% reduction in planting area, with a potential reduction in bread making wheats from over 4.1m tonnes to perhaps 2.4m. The dry Spring will effect yield. There'll be a requirement to import - probably Germany into Tilbury!! There could be the first issue following the fire. Can't see anything other than wheat prices increasing followed by a flour price increase - resulting in an arm wrestle with the multiples on bread prices. Last time Hovis took on Tesco [2010] it cost them about a dozen lines delisted and £10m before they made up! Think late August/Sept will be an interesting time for Hovis. That said, I'm holding my very old shares for better times!!