Uniq register £9.6 million operating losses in the UK
supplier's performance in the UK to be "unacceptable", blaming
problems integrating a newly acquired business for its first half
operating loss of £9.6 million.
The company, who supply leading UK retailers such as Tesco, Asda and Marks & Spencer, have reported a loss of focus in the UK and tough trading conditions as the central instigators of the European chilled food company's operating losses.
Reorganisations by the company in the UK and Northern Europe, specifically the appointment of a new divisional managing director and changing the company's organisational structure, owing to the acquisition also contributed to this.
Commenting on the results, chief executive Geoff Eaton, said: "Although the scale of the changes in the UK are such that we cannot be certain about the timing of recovery, we remain confident of achieving a significant improvement in profitability in the second half of this year."
Eaton claims central to Uniq's problems was the failure of its Minsterley dessert business to handle an increase in business whilst also commissioning new IT systems.
Uniq acquired Minsterley for £16.5m from Northern Foods in May 2004.
"In the first four months of owning Minsterley the site lost £1.3m, which increased to £2.1m over the next six months and then rose to £6.7m in the six months to the end of September", a company statement revealed.
Eaton added "My main priority over the next six months is to bring about a marked improvement in the profitability of our UK business, which I believe has potential for significant growth and development."
"I have already taken decisive action to change both the senior management of this division, and the way we operate and interact with our customers", he added. Uniq has three operating divisions in Northern Europe, Southern Europe and the UK. And currently sells its products in 14 countries.
Uniq's overall business reported narrow first half losses of £1.5 million (€2.1) in spite of a 4 per cent fall in sales.
Pre-tax loss in the 26 weeks up to October 1 contracted from £9.5m in the first half of 2004 to £1.5m, while sales fell from £424m to £408m.
