Premier Foods profits falls

Its cash generation was sufficient to service its financial obligations and to pay them down to reach the target level in the medium term, Premier Foods said.

For the six months ended June 30, the FTSE 250 company said its pretax profit fell to 33m from 39m last year. Revenue decreased 5.2 per cent to 1.18bn

The company employs about 360 at its Quorn meat substitute manufacturing sites in Stokesley, North Yorkshire, and Teesside.

Premier, whose current financing arrangements are in place until 2013, said it continued to have adequate headroom against the covenants agreed with its lenders.

Premier Foods shares, which have lost more than half their value in the past 12 months, closed at 18 pence on Tuesday on the London Stock Exchange.