Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.

Premier Foods looks to be on the road to recovery

By Gary Newman

7 February 2016 10:21

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Premier Foods (PFD) has disappointed investors over the last couple of years but I think it could be on the verge of turning things around.

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Comments

Jeremy

8 February 2016, 05:47

The longer term problem with Premier is the pension schemes.It does not look too bad if you view both schemes together,Premier & RHM,but I am not sure in legal reality you can offset Premiers £400 m shortfall with RHM’s £370 m surplus as is been shown in the accounts as they are surely separate legal entities and I doubt that Premier Foods has any claim on the RHM surplus unless & until the last claimant dies.
Premier Foods Pension fund shortfall is a reality that will probably increase while RHM surplus is a distant possibility that will probably reduce over the years.
Gary Newman

8 February 2016, 12:01

Jeremy, You may well be right on that score, and must admit I’d looked at it from the point of view of them potentially offsetting each other, but couldn’t find anything definitive either way. Overall i think the company looks better than it has done the past couple of years, especially showing a return to profitability, plus hopefully there will be more expansion into the overseas markets and so far that seems to be encouraging, but still isn’t a huge part of the business.