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Bakkavor warns on profit amid coronavirus outbreak in China

By BFN News | 10:03 AM | Thursday 27 February, 2020

Fresh prepared food provider Bakkavor warned on profit amid a 'significant' impact from the coronavirus outbreak in China. The company also reported a plunge in profit as restructuring costs offset a rise in revenue. 'In China, whilst 2020 started well, the recent Coronavirus outbreak is now having a significant effect on our business,' the company said. 'Volumes are significantly down in February and currently there is no clear visibility as to when more normal trading conditions might resume.' Our current view is that adjusted earnings (EBITDA) before exceptionals and start-up losses for our international business in 2020 could be £6m to £10m lower than 2019. Pre-tax profit fell 43.8% to £43.8m, while revenue increased 1.5% to £1.89bn. The company incurred £13.7m of restructuring and impairment costs in the UK, with £7.7m related to the closure of a meals business in Lincolnshire, and a further charge of £4.3m recognised for the closure of the group's non-core UK fast casual restaurant business. The company proposed a final dividend of 4p a share, taking the full year dividend to 6p a share, unchanged on-year. At 10:03am: (LON:BAKK) Bakkavor Group PLC share price was -6.6p at 118p Story provided by

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