Uniq increases bank facilities

However, in a trading update the group also announcedthat it had renewed, increased and extended its banking facilities with Lloyds TSB. UKsales in the fourth quarter were down 9.6% on the same quarter last year, having been just over 1% up in the first three quarters. Slowing consumer spending and trading down was evident across all business units and in desserts and fish the Christmas volumes were below Uniq’s expectations. In Northern Europe sales grew by 1.9% in the fourth quarter. Poland and the company’s Dutch sandwich business grew, sales in the tough German market held up and The Netherlands declined slightly. The operational performance of Poland through the busy winter period improved significantly on last year, Uniq said. In France sales declined by 1.1% in the fourth quarter – a significant improvement, reflecting the success of new product development and promotional activity. Own label and food service had a stronger fourth quarter and, while volumes in the frozen branded business recovered, demand for branded chilled product remained subdued. Uniq said it was pleased to announce that it has agreed terms with its existing relationship lender Lloyds TSB, to replace its existing £40 million credit facility due to expire on 31 March 2010, with an increased and extended £60 million facility which would provide sufficient working capital to complete the company’s restructuring and recovery programme that began in 2006. Chief executive Geoff Eaton (pictured) said: "These are undoubtedly extraordinary economic times. The renewal and improvement of our banking facilities will enable us to take the tough decisions and implement the actions necessary to complete the recovery and restructuring we started in 2006."