Bakkavor would be an ‘excellent addition’ to stock market

Bakkavor was exploring plans for a stock market flotation, the expert confirmed to FoodManufacture.co.uk. Reports suggested the food manufacturer was working with its long-term partner Rothschild on a flotation on the London Stock Market this year, or early next year.

The industry expert, who didn’t want to be named, said: “They​ [Icelandic owners Agust and Lydur Gudmundsson] have done very well to weather the storm of the banking crisis of 2008, and the Icelandic situation​ [financial crisis between 2008 and 2011]. They have continued to trade well, and are a well-run business.​

‘An excellent addition’​

“The UK traded food sector is so thin that a large, successful business like Bakkavor would be an excellent addition, after the loss of companies like Northern Foods.”​

The expert said more large manufacturers, like Bakkavor, would be a welcome addition to the stock market. 2 Sisters Food group was highlighted by the industry insider, but said it was unlikely to happen in the near future.

“It would be good to see 2 Sisters there too, if it could get its financial performance to the right level. Although, it’s probably some way off.”​

Stock market flotation​

Both Bakkavor and Rothschild declined to comment on the reports​ of a stock market flotation.

Bakkavor is the second-highest ranked food business on The Sunday Times​ rich list​, taking the 28^th​ position. It reported £1.7bn in sales last year, with profits of £144M.

Meanwhile, Bakkavor launched a recruitment drive in April. It was recruiting more than 150 staff at its salad production business​ in Dover, while also hiring 86 new staff at its Cucina Sano site​ in Lincolnshire.

The manufacturer employs more than 18,000 people across 51 sites globally. It has 30 facilities in the UK, and manufactures about 5,000 different products across 18 different food categories.