Bakkavor Group PLC on Wednesday said revenue rose in the first half, as it upped its dividend on the ‘improved strength’ of its financial position.

The London-based food manufacturing company reported that revenue increased 7.9% to £1.09 billion in the first half of 2023, from £1.01 billion the year prior. The increase was largely a result of price increases, with volume falling by 0.4% in the period.

The firm said pretax profit grew 0.3% to £32.6 million, from £32.5 million a year ago. Finance costs increased to £13.3 million from £8.9 million, it said.

Bakkavor declared an interim dividend of 2.91 pence per share, increasing from 2.77p in the first half of 2022. The dividend increase was based on the firm’s strong financial position and cash generation.

Looking ahead, the company upgraded its full-year guidance to an operating profit of £89.4 million, from a previous expectation of £84.7 million.

Chief Executive Mike Edwards said: ‘I am pleased with the strong performance the Group has delivered in the first half, and the momentum this has created as we move through the rest of the year. As ever, the great people we have in the business have been fundamental to our success and I would like to thank them for their relentless hard work and commitment.

‘We are confident in delivering an upgraded full-year performance, with adjusted operating profit now anticipated to be at least in line with last year and ahead of current market expectations. This is underpinned by the execution of our restructuring, which is driving performance and synergies across the business ahead of our expectations. I am also pleased that we now have momentum building in all three regions, which is positive as we look forward.’

Bakkavor shares rose 4.0% to 103.00 pence each on Wednesday morning in London.

Copyright 2023 Alliance News Ltd. All Rights Reserved.