LONDON (SHARECAST) - Premier Foods has appointed a Chief Operating Officer to help accelerate its transformation from a stodgy, overweight and indebted company to something leaner and more attractive to investors.
Geoff Eaton is filling this newly created role and will report directly to Michael Clarke, Chief Executive Officer.
Eaton, who was formerly Chief Executive Officer of chilled foods group Uniq, will help oversee strategic changes, such as the move to manage the grocery and bread businesses as two distinct divisions.
The focus for Grocery will be on continuing to build momentum behind the company’s branded portfolio, which represents 86% of total grocery sales.
In Bread, a more “fundamental approach will be taken to help unlock future value”.
The company, which owns the Hovis, Mr Kipling and Sharwood brands, expects to deliver further cost reductions in 2013 as it separates businesses recently sold. These will be over and above the £40m of savings that will be delivered by the end of 2012.
Consensus estimates are for a pre-tax profit of approximately £74.5m for the year ending December 31st 2012, putting it on a forward price/earnings multiple of 2.4.