Northern plays it cool despite dip

CHILLED foods group Northern Foods sought to shrug off a dip in first-half profits, boasting strong growth in current sales. The supplier to Marks & Spencer and other major supermarkets said its fortunes had turned around in the second quarter and predicted a 'satisfactory' full-year performance. It raised the interim payout 5.2% to 3.05p a share.

Pre-tax profits fell nearly 9% to £38.4m for the six months ended September, which Northern pinned on higher prices for meat and milk and disruption stemming from capital projects. Sales climbed 6.2% to £698.2m with sales to the five largest customers - M&S, Tesco, Sainsbury, Asda and Safeway - up 8.5%.

Sales in the first six weeks of its second half were up 4%, with sales to the big five ahead 6.5%.

'Our aim is to maintain the progress evident in the second quarter, and so achieve a satisfactory outcome for the year as a whole,' said chairman Christopher Haskins.

Northern also named Peter Blackburn as non-executive director and chairman designate. Blackburn, 60, will become non-executive chairman on Haskins' long-planned retirement early in the new calendar year. Haskins will turn 65 in May next year.

Blackburn retired in June as chairman of Nestle UK, part of the world's largest food group Nestle SA.