The new chief executive of Typhoo has insisted the company still has a future, despite making a £10.3m loss and breaching its banking covenants.
Keith Packer told The Grocer the company had the full backing of its shareholders - even though newly filed accounts at Companies House for the year to 31 March 2008 showed Typhoo had broken a banking covenant during that period and had debts of £55m, which were due to be paid last week.
Packer said a £6.3m bank loan had been paid. This left the company with a £48.7m loan, secured through another subsidiary of its owners, still to be paid.
"There definitely is a future for the company and we are on a recovery plan to put the business to where it needs to get to," he said.
"Typhoo is still an important brand to shoppers. We have a new proposition and that will put us in a good position to hit our target customer, the 45 to 60-year-old female."
The loss would shrink this year, said Packer. "We are on track to get to a break-even position, hopefully in about 12 to 18 months' time," he said.
Gross profits, which were £5.4m for the year to 31 March 2008, and margin, which was 9.5% for the same period, would increase, Packer said. "We are improving our efficiencies as a business," he added.
Packer, whose appointment was announced this week, was promoted from sales director, a role has held for three years. During that time he helped manage the transition of Typhoo from Premier Foods to the brands' majority shareholder, Indian group Apeejay Surrendra.
Keith Packer told The Grocer the company had the full backing of its shareholders - even though newly filed accounts at Companies House for the year to 31 March 2008 showed Typhoo had broken a banking covenant during that period and had debts of £55m, which were due to be paid last week.
Packer said a £6.3m bank loan had been paid. This left the company with a £48.7m loan, secured through another subsidiary of its owners, still to be paid.
"There definitely is a future for the company and we are on a recovery plan to put the business to where it needs to get to," he said.
"Typhoo is still an important brand to shoppers. We have a new proposition and that will put us in a good position to hit our target customer, the 45 to 60-year-old female."
The loss would shrink this year, said Packer. "We are on track to get to a break-even position, hopefully in about 12 to 18 months' time," he said.
Gross profits, which were £5.4m for the year to 31 March 2008, and margin, which was 9.5% for the same period, would increase, Packer said. "We are improving our efficiencies as a business," he added.
Packer, whose appointment was announced this week, was promoted from sales director, a role has held for three years. During that time he helped manage the transition of Typhoo from Premier Foods to the brands' majority shareholder, Indian group Apeejay Surrendra.
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