Burger maker cooks up £9m losses

UK - Burger and frozen food supplier Canterbury Foods has dismayed shareholders with a £9m write-down on its meat business that pushed first half losses to £11.5m.

The company warned in July that high beef and energy costs and lower food prices meant that its margins were under pressure.

But the scale of losses - £1.7m before goodwill and exceptionals, compared to £90,000 the year before – shocked investors into selling off the stock.

The company’s share price dropped 25% to 7.5p on Thursday, 22 September, down from nearly 30p in June.

Net debt was also up, reaching £19.1m at the end of June, and the firm said it was actively looking at ways to reduce the pile.

Source: FWi

26 September 2005