Pension deficit fears see Uniq shares fall

The firm, which supplies Marks & Spencer and The Co-operative, hopes to renegotiate its liabilities in order to grow its business so it is better placed to deal with the fund.

Uniq is saddled with the pension as a hangover from its previous incarnation as dairy giant Unigate, with former milkmen among the 21,000 member scheme.

Chief executive Geoff Eaton said an "innovative" plan to deal with the pension woes had been agreed and is subject to regulatory agreement.

"If cleared, this will facilitate our strategy to build a UK focused convenience food business with the quality and scale to generate sustainable growth," Mr Eaton said.

"The outcome of the regulatory process is likely to have a fundamental impact on the future of the pension scheme and shareholder value."

Analyst Nicola Mallard, of Investec Securities, said progress on the plan was good news but added that getting the go ahead from the regulator was "no mere formality".

She said the company, whose 25m market capitalisation is dwarfed by its liabilities, was difficult for shareholders to assess because of the uncertainties about the pension scheme.

"Uniq is no longer being valued as something that makes sandwiches and desserts, it is some sort of pension play," she said.