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.