Greencore inks deal to sell Bristol site; FY profits jump

(Sharecast News) - Greencore on Tuesday said it had struck a deal to sell its Bristol soups and sauces site to Compleat Food Group to meet regulatory conditions on its Bakkavor takeover as it also posted a jump in annual profit. Adjusted core earnings at the convenience food producer rose 17.9% to £181m in the 12 months to September 26. The company said it had made a positive start to current-year trading.

Revenue increased 7.7% to £1.94bn driven by net new business wins, volume growth and mix and inflation and higher prices.

The Bristol sale is subject to approval by the UK's Competition and Markets Authority which raised concerns over dominance in the chilled sauces sector as part of Greencore's £1.2bn takeover of rival Bakkavor which is scheduled to complete next year.

Reporting by Frank Prenesti for Sharecast.com