The Moretonsite News Archive
© BBC News 3 March 2008
Shares Plummet At Premier Foods
Its shares fell from 120p to 85.25p on the London Stock Exchange this morning, their lowest level since the company floated in 2004. Shares recovered during the aftenoon to close down 11.75p at 108.75p.
The shares were also hit by a negative broker comment.
Analysts at brokers Shore Capital said there would be stiff competition from rivals Warburton's and Allied Bakeries as well as pressure from supermarkets to keep prices down.
"Shore Capital believes that 2008 will be a tougher year for the food industry with Tesco and Asda seeking to protect their sales base from a revitalised Morrisons," the broker said.
Premier Foods has debts of £1.7bn after buying Mr Kipling and the UK arm of Campbell's Soup, makers of Oxo and Homepride, in the past two years.
© BBC NEWS 3 March 2008