Uniq’s UK focus is paying off
1 min read
The chilled convenience food manufacturing group Uniq said today (22 July) that its focus on the UK was paying off as it posted improved half year sales and profits.
Chief executive Geoff Eaton (pictured) said: "The strategic decision to focus on the UK is delivering the expected benefits in terms of higher sales growth and profits. We are successfully building the quality and value of the business in parallel with seeking a satisfactory outcome for the pension scheme."
The company has been in dialogue with the pensions regulator to find a long term funding solution to its pension legacy issues and may eventually re-capitalise to facilitate a settlement.
In the first half of 2010 Uniq completed the sale of its continental businesses and its transformation into a UK focused chilled foods business which is "now profitable and showing strong sales growth".
In the first half the business made an operating profit of £1.0 million compared to a loss of £3.7 million in the first half of 2009. Sales increased 10.3% in the second quarter and 7.3% overall.
The first half saw the launch of 87 new products, representing almost one third of Uniq's range, compared with 28 in the same period last year.
Uniq said it had continued to develop new and improved products with the launch of the M&S 'Simply Fuller Longer' range, the complete relaunch of the 'Food to Go' range, including softer bread and new pack designs and a range of sandwiches and salads, targeted to coincide with the World Cup.
Changes to the desserts business – restructured during 2009 with the consolidation of three sites to two – were starting to show results
However, following the entry of a major dairy processor into the cottage cheese market, Uniq said its Evercreech, Somerset site would experience a significant reduction of cottage cheese business in the second half of the year. The financial impact of this reduction in business was mitigated by the success of the new product launches in desserts. Management were carrying out a strategic review of the cottage cheese production facility with a view to the feasibility of downsizing the operation.
As a result of the transformation to a UK only business the Gerrards Cross, Buckinghamshire head office staff numbers had been reduced from 17 people to 9 effecting an annualised cost saving of £0.7 million.
