Greencore ends courtship with mystery suitor

By Rick Pendrous

- Last updated on GMT

Related tags Value added

Greencore has reported healthy results as it confirmed that takeover talks with a “mystery suitor” were now at an end. It has also announced it is seeking inclusion in the FTSE UK Index Series.

Turnover was up 8.7% at £804M, with group operating profits of £51.5M reported for the year to September 2011, in line with its results for the previous year.

Greencore’s convenience division performed particularly well, although its cakes and desserts business suffered from excess capacity in these markets. The chilled foods group reported that integration of the Uniq business, which completed on September 23, was “on track”.

Analysts Darren Shirley and Clive Black from Shore Capital Stockbrokers said Greencore’s share price warranted a higher value. They said: “We believe Greencore is significantly undervalued, with a 2012 price earnings ratio at 4.9 times, an earnings before interest, taxes, depreciation and amortisation of 4.9 times and a dividend yield of 8.2%.”

They added: “This is more akin to a business in distress rather than one that, in our view, delivers differentiating value-added products to its customers and is in the early stages of improving both profitability and, importantly, cash generation.”

When Food Manufacture interviewed Greencore chief executive Patrick Coveney late last year, he emphasised the importance of him not taking his eye off the ball of the day-to-day business. “As a business, we are only as good as the delivery we have for our customers every day,”​ said Coveney.

Related topics Chilled foods

Related news

Follow us

Featured Jobs

View more


Food Manufacture Podcast

Listen to the Food Manufacture podcast