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?

Norges Bank >3%

Premier Foods gets breathing space from banks




16:33, Monday 7 November 2011

LONDON (Reuters) - Britain's biggest food group Premier Foods (Xetra: A0B7GL - news) won an extra three-month grace period from its lenders on Monday as it secured a deal whereby its banks agreed to defer a financial covenant test to the end of March 2012.

The group, whose brands include Ambrosia, Batchelor's, Hovis and Mr. Kipling is struggling with hefty debts of 1.3 billion pounds ($2.1 billion) after an acquisition spree and feeling the squeeze of a sharp rise in commodity costs and weak consumer demand in Britain.

The deferral now gives Premier (BSE: PREMIER.BO - news) until March 31 to meet its covenant test instead of December 31, 2011 previously. It said the deal forms part of its talks about longer term refinancing and also confirms ongoing bank support for the business.

Premier is paying an extra 1.2 million pounds for the three-month waiver on the covenant test which calls for a net debt to earnings before interest, tax, depreciation and amortisation (EBITDA) ratio of below 3.9 times.

Chief Executive Michael Clarke, who joined from U.S. food group Kraft Foods (NYSE: KFT - news) in mid-August, welcomed the deal and said in a statement; "This is an important step towards securing a longer term financial foundation for the business."

Premier is looking to sell off some branded businesses such as Branston Pickle and Hartley's jam as well as its private-label business to focus instead on eight key brands -- Ambrosia, Batchelor's, Bisto, Hovis, Loyd Grossman, Mr. Kipling, Oxo and Sharwood's.

Premier shares closed up 10 percent at 3.7 pence, to value the group at around 105 million pounds.

On edit - I thought the article was current!

From over the road. Hovis owner Premier Foods sells canning business for 182m

Broker Upgrade target 15p ++

Shares in Premier Foods PFDS.L add 5.9 percent, the top FTSE 250 .FTMC gainer, as Investec Securities upgrades its rating for the under-pressure food producer to "buy" from "hold" with a target price of 15 pence.
"We think the market has under-appreciated the significance of the covenant deferral and move to Buyers, reflecting both this and some faith in the value of a set of entirely new brooms at the top," Investec says in a note.
Premier Foods shares jumped 10 percent on Monday after the group said that its banking syndicate had agreed to defer a covenant test scheduled for December 31 as discussions around refinancing the company's debt continue.
"We think there is a plausible equity value of 20 pence in six months with better than the 20 percent probability of realisation that the share price is currently discounting," the broker adds.
Investec says that the resultant risk/reward gives Premier Foods a legitimate place in a special situation portfolio for it.
Reuters messaging rm://jon.hopkins.thomsonreuters.com@reuters.net

Another 6% up today.
Now up 25% in just six trading days
Maybe "Investec" are on to something here?

And now in auction.

Up another 14% atm.

450,000 of Director buying can't hurt - although hardly fortunes.

PFD 5.40p +0.75p

Yesterday's chart of ready to BREAKOUT is happening now
29m volume in just OVER 2 hours

Back in auction +28.5%

And again +33.4%

Incredible .

I imagine there will be a fair bit of profit taking this afternoon.

I somehow doubt it Skinny.

Just look at the charts mate.

Someone knows something that we don't know to warrant this kind of share price movement. I suspect an upcoming sale of assets to Associated British Foods (ABF). They have already sounded out an "interest".

Agreed some that got in at the bottom will jump ship. But there has to be some kind of solid foundation for a rise like this to happen in the first place.

I would say when the weekend press get hold of it and the armchair investor reads all about it, Monday will see yet another strong rally.

I might even close today at this rate.

Just sold half @6.9068 + 2.8301. + @70% (ish).

Premier Foods soars 40pc on director buying
Ben Harrington, 18:52, Friday 11 November 2011

Premier Foods (Xetra: A0B7GL - news) surged 40pc as the London stockmarket rallied on hopes the Eurozone debt crisis may be contained.

The beleaguered food company, which has seen its share price fall from a high of 35p earlier this year, was in demand after several directors revealed they had been buying shares in the business.

Yesterday, Premier Foods said Bob Spooner, group supply chain director, had bought 300,000 shares at 4.45p and Mark Hughes, group procurement director, had snapped up 150,000 shares at 4.86p. Mark Vickery, group change director, also bought 82,947 shares at 5.98p while Iwan Williams, managing director of Bakery, purchased over 1.1m shares at 3.85p.

The wave of director share buying came after the company said earlier this week that its banking syndicate had agreed to defer a covenant test scheduled for December 31 as discussions around refinancing the company's debt continue.

That led to an upgrade from Investec (Frankfurt: A0J32R - news) to "buy" from "hold" with a target price of 15p.

"We think the market has under-appreciated the significance of the covenant deferral," said Investec, adding "we think there is a plausible equity value of 20p in six months." Premier Foods climbed 1.9 to 6.4p

Oops - Botulism warning over Loyd Grossman food sauce

Up another 12.5% today.
This one is flying on a daily basis now.
What next? I think at least 10p, but DYOR

KEEP an EYE

5.30p ( 5.255 / 5,345p )

Had a large drop a bit earlier after being at 7.46p and now is back up

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