Does anyone know this company? It was highlighted in this weekend's paper and I wonder if it is about to fall a lot more ( eg with the prospect of a Rights Issue, etc), and that might be a good time to get in - when they have some cash.

Are they beholden to Supermarkets, I wonder - could this mean they have little "pricing-power"? - That's something that any go-go business needs, perhaps along with a USP - although this is hardly likley in the "food" industry, is it?

“Over the last few days it has become apparent that this mechanism has been widely misunderstood and misinterpreted," (Latest company statement)

Errm.. no it hasn't. It's been very well understood and interpreted. Yooz bin rumbled.


The company has reportedly collected £millions via this disgraceful tactic. If the furore leads to less cash coming in via bribes, they are in even deeper financial trouble now. Their debts are already massive - several times their market cap. I expect another profit warning, on top of the ones issued in June and 6 weeks ago.

When their debt structure was rejigged in March, it was tied to a supposed rebirth of the company's prospects. Yet a few days later the share price went into reverse and has fallen by two-thirds since, with two profit warnings along the way.

Not just individual suppliers of food who were bullied by Premier. Marketing agencies that worked with Premier Foods are now attacking the company:

"..Agencies that work with Premier Foods are being urged to contact the Marketing Agencies Association's Pitch Watchdog anonymously to flag concerns over controversial 'pay to stay' payments, as it calls on government to take action.
The MAA has urged agencies to come forward to raise concerns over the practice..."

"...MAA MD Scott Knox accused the business of using agency payments as "credit" to fund the business.."

".. Another agency said last year it was asked to make payments and that it was "effectively" asked to work for nothing. The agency claimed after it refused to make payments to Premier, which he described as an "aggressive procurement led business", it found itself the victim of even tougher price negotiations. Labelling it "malpractice", one agency said tightening the screw on the agency supplier base "destroyed" reputational trust and risked long term relationships. Other business should not be forced to foot the bill for management mistakes, he said..."


http://www.marketingmagazine.co.uk/article/1325559/agencies-urged-raise-concerns-premier-foods-investment-payment-scheme?HAYILC=RELATED

And now, a question mark over the quality of the famous name foods that it sells:

Maggots reportedly found in Oxo cubes:

https://metro.co.uk/2014/12/08/couple-find-live-maggots-inside-oxo-cubes-seconds-before-putting-it-in-dinner-4978656/

I hope they weren't the vegetable ones!

Beware Food Zombie

Comprehensive assessment of PFD

Trading Statement

Quarter 4 Management Statement

Improving sales trend through key trading period

Premier Foods today presents a management statement for the quarter to 31 December 2014 and summary results for the twelve months to 31 December 2014. As previously advised, the Company is changing its year-end to early April, so the next audited financial statements will be prepared to the fifteen months ended 4 April 2015. All disclosures in this statement are unaudited and the term 'year' refers to the twelve months to 31 December 2014.

· Power Brands sales down (3.5%) in quarter 4, with improving trend in December
· Highest quarterly market share for three years; highest December market share for four years
· Positive results from areas where we are investing
· Mr. Kipling delivered increased sales and share gains, with accelerating December trend
· Trading profit for the year of £131.0m, in line with expectations
· Adjusted PBT for the year of £77.1m and adjusted earnings per share of 8.6p
· Net debt at 31 December 2014 of £567.6m, in line with expectations

Some of the company's words are rosy, some of their numbers are not. The numbers matter more.

"..The Company's underlying sales declined by (4.6%) in the fourth quarter of the year, with Power Brand sales down (3.5%) and Branded sales (3.4%) lower. Non-branded sales declined (11.5%)..."

(Yes I know I am being selective!) Will today's initial surge be sustained?

PS: Claire Harrison-Church, currently Category Business Unit Director at Premier Foods, and described on her arrival in as having "a wealth of experience across the retail industry and marketing, having led marketing teams at KFC, Boots, and Unilever." is leaving. Headhunted by Asda.

A decent run lately.

I have a small holding, no plans to sell.

Time to buy?
After McCormick has walked away (RNS April-2016 - DYOR )...does anyone think this is a time to invest, with current sp is 39p...
.....it was £2 in late 2007, but that was before Lidl/Aldi knocked UK Supermarket's high volume position . . . and now Supermarkets are able to dictate to suppliers, like Premier, their pricing policy. Esp.as folks now don't have "Brand Loyalty" - IMHO.
+With labour / transport costs likely to rise, where does that leave PFD ?

Credit Suisse note today:
"■ A very disappointing Q3 and outlook statement sees Premier Foods warn that profits are set to be 10% below consensus. We lower our estimates accordingly and price target to 43p
■ Q3 sales were down 1% rather than the modest increase that had been expected post H1, with Q3 volumes up 3.4% but price/mix -4.4%. No full year sales guidance is now offered (at H1 the group was expecting +2-4% in H2) , but the group expects the immediate trading backdrop to remain challenging.
■ The group highlights in Grocery a shift in promotional trends in the trade away from multi-packs putting corresponding pressure on volumes - to offset this price promotions were put in place but this has had a marked impact on profits. In Cakes Kipling has lost ground to own label. In general, market shares haven't fallen, the group sees this as market not market share driven
All this is taking place against a backdrop of significant input cost pressure which is beginning to feed into the P&L. The group is mitigating where it can but along with many in the UK is seeking price increases (of mid single digits we assume). In the current climate some lag in gaining these increases is inevitable.
■ Expected year end debt of £525m is not much different to the £521m we had. The group has identified a further £10m of cost savings for 2017/18 and the same again in the new year, largely it seems from merging the supply chains of the two divisions.
■ It is very disappointing to report this continued decline in sales despite all the efforts of the company. £10m cost savings in each of the next 2 years may help protect profits to some degree, but is set against the on-coming input cost inflation. The investment case needs sales growth and that continues to prove elusive."

I just spotted this thread. I was considering this share, but it seems PFD have not sorted out their problems.

I held this share a long time ago, but "cut my losses" when it was revealed that they had to supply food to the supermarkets "under cost" - which is a bad business model.

It is a shame that after all this time they are unable to change the model and I find a realistic way forward to turn things around faster.