Northern 'on right track' -- but more changes to come

Troubled ready meals producer Northern Foods has seen the departure of another senior member of staff -- finance director Sean Christie, after 25 years service.

Analysts saw the move as evidence of chief executive Patricia O'Driscoll's desire to create a new senior management team. She has already culled 30 senior positions to shorten reporting lines and remove duplicated activities.

Northern is carrying out "robust action" to cut costs and improve efficiency. It put its 15 companies into four divisions earlier this year. It has also announced the closure next year of its quiche-making Cavaghan & Gray factory in Carlisle and its sausage roll factory Evesham Foods in Worcestershire, with the loss of over 1,000 jobs. It said that both factories were under-utilised and that closures would yield annual savings of £10m by March 2006.

Analyst Andrew Saunders at Numis Securities said the changes would put Northern on the right track: "There should now be a lot more synergy benefits and the opportunity to buy better."

He said Northern was likely to sell some "questionable" businesses , which could include its biscuit and flour milling interests. "In five years' time Northern won't be trading in as many categories."