(RTTNews) - Food products company Northern Foods Plc (NFDS.L: News ) Tuesday reported a profit for the first half compared to a loss last year, reflecting significantly lower restructuring costs and one-off tax charge. The company said sales and profit expectations for the current financial year remain unchanged, and in line with market expectations.

Pre-tax profit for the half-year was GBP 7.2 million, compared with a loss of GBP 8.1 million last year.

Profit was GBP 12.9 million or 2.76 pence per share, compared with a loss of GBP 17.1 million or 3.54 pence per share in the same period a year ago.

Profit for the period mainly included restructuring costs after tax of GBP 2.4 million, lower than GBP 18 million last year, and adverse net pension financing of GBP 6.7 million.

Underlying profit before tax, excluding the items, increased slightly to GBP 12.9 million from GBP 12.7million in the previous year. Underlying earnings per share increased to 2.14 pence from 2.08 pence last year.

Half-yearly revenues decreased to GBP 466.9 million from GBP 468.6 million in the comparable period, reflecting the Fenland site closure last year.

Like-for-like sale grew sup 2.9%, led by strong growth in Chilled and Bakery divisions. Like for like sales is underlying revenue which excludes the impact of currency rate changes and product categories no longer manufactured.
Segment-wise, Chilled division generated external revenues of GBP 240.3 million, up from GBP 239.7 million in the comparable period. External revenues from Frozen segment declined to GBP 125.2 million from GBP 131.3 million last year. External revenues from Bakery division was GBP 101.4 million, up from GBP 97.6 million a year ago.

Northern Foods also announced a GBP 26.5 million investment in automated technology across Fox's Biscuits, which the company said will drive earnings growth, support higher margins and generate greater operational efficiencies.

Northern Foods proposed an interim dividend of 1.55 pence per share, in line with the previous year, which will be paid on January 29 to shareholders on the register at close of business on January 8, 2010.

The company noted that the Bakery division has a higher proportion of revenue in the second half of the financial year due to higher demand during the Christmas period. Revenue for the Chilled and Frozen divisions is not significantly impacted by seasonality.

For the full year, Northern Foods expects underlying effective tax rate of 23%, compared to 23.8% last year, reflecting the mix of UK and Irish tax rates.

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