GREENCORE’S DECISION to honour loss-making contracts on a short-term basis as part of its takeover of Uniq is part of a strategy to maintain strong customers relationships, according to an analyst at Shore Capital.
Darren Shirley of Shore told the online trade publication foodmanufacture.co.ukthat he expects Greencore to post modest growth when it publishes its interim results on May 22nd.
“We expect a more modest growth rate through February and March at 6.5 per cent, implying first-half sales growth of 10.5 to 11 per cent and sales of £382 million,” he said.
“We forecast Ebit margin in the Greencore convenience business to be broadly flat at 6.5 per cent, which leads us to an estimated contribution of £24.6 million.”
Shirley also expects 3 per cent sales growth in the ingredients and property division and is looking at a flat Ebit contribution of £900,000 for the first half of the year.
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