Spalding firm Bakkavor profits drop 37 per cent

The Icelandic firm, which bought Spalding-based Geest in 2005, released results for the first three quarters of the year which show an operating profit of £54.7m - down 37 per cent on 2007.

For the third quarter operating profit had dropped by 39 per cent to £18.9m.

The company, which has factories in Spalding, Holbeach, Holbeach St Marks and Sutton Bridge, has blamed the falling figures on a downturn in consumer confidence and unsettled summer weather in the UK, which affected sales performance during the period.

Bakkavor chief executive August Gudmundsson said: "Bakkavor Group is progressing in very challenging conditions as we continue to focus on our business priorities to mitigate inflationary costs, improve operation efficiencies, increase market share and drive significant cash generation.

"As such we are making firm groundwork towards our stated intention of returning to profit growth in 2009."