Greencore raising up to €100m in cash to bolster defences against Covid

Greencore CEO Patrick Coveney said the group’s board is 'optimistic' about the medium-term prospects for the business, despite the near-term challenges. File picture: Gary O'Neill

Convenience food group Greencore is raising up to £90m (€100m), in gross proceeds, through the sale of new shares to financially shield it against further Covid damage.

The Irish sandwich, salads and wraps maker — whose main focus is the UK ‘food-to-go’ market — made a pre-tax loss of £10.8m in the 12 months to the end of September. This was directly driven by Covid restrictions and compared to a £56.4m profit in the previous year.

Greencore’s latest annual revenues fell 12.5% to £1.26bn.

“In light of the ongoing uncertainty that is being caused by the current lockdown measures, there is a strong rationale in further strengthening our balance sheet,” said chief executive Patrick Coveney.

Greencore said Covid continues to impact its short-term performance. The group incurred Covid-related costs of £24.6m during the year — comprising £10.7m in operating costs and £13.9m in exceptional charges.

The operating costs included payments to front-line employees and furloughed staff and reconfigured factory lay-outs to meet social distancing guidelines.

Mr Coveney said the group’s board is “optimistic” about the medium-term prospects for the business, despite the near-term challenges. He said Greencore managed to secure new business and extend its product range through the year. Performance was on target until the Covid outbreak.

The group’s senior management have participated in the share sale, contributing around £700,000 to the raise.