Food group Uniq on road to recovery

CHILLED food group Uniq yesterday said its recovery was on track after its annual results saw a return to profit for the group's UK and French operations.

The firm, which supplies sandwiches and ready meals to Marks & Spencer and desserts to Tesco, reported a UK profit of £5.9 million last year, against a £2.8m loss in 2006 amid an overhaul launched two years ago.

Buckinghamshire-based Uniq said it still had work to do in turning the business around and would face a tougher year ahead.

It added that it was renegotiating the terms of its contract with major client M&S – which accounts for 27 per cent of group sales – in a move which could have a "significant impact" on its UK arm.

Uniq said that it had been appointed by M&S as supplier for its three core "food to go" offerings – fish, deli and premium desserts – and hoped the contract discussions would lead to a greater share of M&S's business.

The group reported a narrowing in group-wide operating losses by £7.3m to £3.6 million in the year to 31 December and said sales rose 2.9 per cent to £736.1m despite soaring food-price inflation and doubts over consumer spending.