Premier Foods: 2008 Interim dividend will no longer be paid

London / UK. (pf) Premier Foods PLC, the United Kingdom´s biggest food manufacturer, said in an Interim Management Statement, that it will not pay an interim dividend in 2008 as it looks to reduce its debt. The maker of household brands like Hovis bread, Mr Kipling cakes and Bisto also said it had agreed with its lenders that a test of its banking covenants due on December 31, 2008 would be delayed until March 31, 2009. The Interim Management Statement is issued for the 17 weeks ended 25 October 2008. Summary:

• Group sales up nine percent in the period and eight percent year to date.
• Group Trading profit in line with our expectations.
• Positive consumer response to Hovis relaunch.
• Manufacturing rationalisation programme completed.
• RHM and Campbell´s synergies continue to develop in line with plan.

• Ongoing review of capital structure:
  • Constructive discussions with lending banks continue.
  • Deferral of 31 December 2008 covenant test to 31 March 2009.
  • 2008 Interim dividend will no longer be paid.

The Group achieved sales growth of nine percent over the four months to October 2008 compared to the same period last year, which reflected both the impact of pricing across the business and volume growth in our Grocery division. Year to date sales are eight percent ahead of the same period last year. Trading profit has improved in line with expectations as the benefits of the integration synergies and cost recoveries are realised.
Info: «Interim Management Statement» (press release).