DTI probes Iceland trading

2 July 2001

DTI probes Iceland trading

By FWi staff

THE Department of Trade and Industry is investigating allegations of insider dealing at frozen-food retailer Iceland, reports The Daily Telegraph.

This follows a probe by City watchdog the Financial Services Authority into dealings by Icelands founder and former chairman Malcolm Walker.

Mr Walker sold a 13.5 million holding last December, weeks before the companys shares fell almost 15%, although there had been no news from the company.

Last week it was reported that Mr Walker was setting up a rival frozen-food retailing business.

Meanwhile, The Independent reports that the heat is on Iceland, which is to announce its full-year figures on Wednesday (04 July).

Stock value collapsed from a five-year high of 346p to 141p after the chain switched to organic produce, sending sales crashing.

There has been a slight recovery recently and sales declines are expected to show signs of easing.

Fellow retailer Somerfield, which has stabilised from a nadir a year ago, announces its full-year figures on Tuesday (3 July).

Analysts are unsure what to expect as forecasts vary from loses of 21m to profits of 10.5m.


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