Iceland faces questions over move into restaurants

The latest information from Iceland Foods

Iceland’s profits, which one analyst called a “breakthrough year,” increased by 31%, but the frozen food group continues to question its entry into the restaurant sector.

Lannis, the parent company of a privately held retailer, filed an account with Companies House on Tuesday, with annual sales up 16% to £ 3.78 billion through March 26, Corona in the UK. He said it was almost exactly the same as the virus pandemic. ..

Profit growth was helped by controversial decisions Dont return A reduction in the business rate of approximately £ 46 million received during the fiscal year. This was more than offsetting £ 34m of Covid-related costs incurred during the period.

The company previously pointed out that the bailout wasn’t for lending and that it wasn’t just food retailers that maintained support, but “thanks to the government.”

During the period when the rate cut was applied, the group lent £ 109 million to another holding company managed by founder Sir Malcolm Walker and CEO Tarsem Singh, previously by South African conglomerate Blait. I bought the shares of Iceland that I had.

Investors said they chose not to inject new shares into the group when Walker and Dariwal’s family acquired Blaight’s shares, according to a bond analyst following the company.

Lannis also provided a £ 31m loan to the same family holding company to raise funds to acquire 28 restaurants originally owned by another entity managed by Walker and Dariwal through prepack management.

Analysts said management faced questions about the deal when the results were presented to investors about three weeks ago and at a £ 250m bond-issuing roadshow earlier this year. ..


Sales increased for the year to March 26

The prospectus on the matter stated that Lanis intended to bring the restaurant under its control over time, potentially exposing retailers to the financial risks of the restaurant.

“We will use the cash on the balance sheet to repay some or all of the outstanding debt of the restaurant business,” he added, but the restaurant will not be an important part of the group, or Working capital is required.

Neither loan has been repaid yet. The company did not immediately respond to requests for comment.

Analysts added that diversification was one of the reasons why the company’s bonds, which matured in 2028 and held coupons lower than the debt they replaced, traded below par.

By refinancing, Lanis held about £ 795m in bonds. This is about 4.5 times the return on the underlying asset.

“Management doesn’t seem to be in a hurry to unleverage as long as it can maintain a cash balance of over £ 100m,” analysts added.

Lannis closed the fiscal year with £ 125m in cash, less than expected after Greensill Capital, which provided the financial functions of the supply chain, collapsed into power.

Iceland faces questions over move into restaurants Source link Iceland faces questions over move into restaurants

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