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How Will Premier Foods’ Shareholder Showdown Pan Out On Wednesday?

By Spreadex (Connor Campbell)Stock MarketsJul 17, 2018 10:53
uk.investing.com/analysis/premier-foods-plc-200202576
How Will Premier Foods’ Shareholder Showdown Pan Out On Wednesday?
By Spreadex (Connor Campbell)   |  Jul 17, 2018 10:53
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Up until very recently the food manufacturer – with brands including Angel Delight, Super Noodles, Bisto and Mr Kipling – had been having a rather meh year. Opening at 41.15p, it had trickled to a 3 year-plus low of 35.62p by early May.

Premier Foods PLC
Premier Foods PLC

However, developments in July, namely news that Oasis Management had upped their stake in the firm to 17.3% with an eye on ousting CEO Gavin Darby sent the stock rocketing higher, with Premier Foods PLC now at a current trading price, and 18 month peak, of 46.65p.

The company’s most recent update came in mid-May, when it released its full year results. There Premier Foods revealed a whopping 74% surge in pre-tax profit to £20.9 million, following a 3.6% increase in revenue to a 5 year high of £819.2 million, with that latter number helped by strategic partnerships with Nissin and Mondelez International delivering 55% of the growth. Basic earnings, meanwhile, rose 28.6%, from 0.7p to 0.9p per share.

Even though Wednesday sees Premier Foods release its first quarter figures, with investors wanted a continuation of the strong performance seen in the last financial year, the headlines are going to be centred on the AGM. As mentioned, Oasis Management, with the support of Paulson & Co, which has a 6.2% stake, are looking to get rid of chief exec Darby due to ‘years of persistent shareholder value destruction’. They have a fight on their hands, however, given that Japan’s Nissin Foods, which has a 20% stake, is reportedly backing Darby.

Premier Foods (LON:PFD) has a consensus rating of ‘Hold’ alongside an average target price of 41p.

Disclaimer: Spreadex provides an execution only service and the comments above do not constitute (or should not be construed as constituting) investment advice or recommendations, or a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any person placing trades based on their interpretations of the above comments does so entirely at their own risk. Spreadex Ltd is a financial and sports spread betting and sports fixed odds betting firm, which specialises in the personal service and credit area. Founded in 1999, Spreadex is recognised as one of the longest established spread betting firms in the industry with a strong reputation for its high level of customer service and account management.

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How Will Premier Foods’ Shareholder Showdown Pan Out On Wednesday?
 

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How Will Premier Foods’ Shareholder Showdown Pan Out On Wednesday?

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