18 November 1998
Northern Foods slips at the halfway mark

NORTHERN Foods has become the second food company within days to announce poor interim profits.

The company saw pre-tax profits slip to £40.2 million for the six months to 30 September, against £42m last time.

The reason for the decline was higher interest rate charges on debt – up from £2.1m to £8.1m.

Money borrowed to fund acquisition expansion and the purchase of capital equipment sent debt levels to £206m from £150m.

Northern Foods announcement follows a similar statement from Unigate on Monday.

The collapse in pig prices meant Unigate reported unchanged pre-tax profits at £67.5 million for the six months to 30 September.