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| Version 3 | Version 4 |
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| Bisto owner plans Brexit stockpile | Bisto owner plans Brexit stockpile |
| (35 minutes later) | |
| Premier Foods has said it intends to stockpile raw materials in the run-up to Brexit as fears grow over gridlock at UK ports. | Premier Foods has said it intends to stockpile raw materials in the run-up to Brexit as fears grow over gridlock at UK ports. |
| The firm, which owns Bisto, Oxo and Mr Kipling, said it was taking steps "in the absence of certainty over the arrangements for the UK's departure from the EU". | The firm, which owns Bisto, Oxo and Mr Kipling, said it was taking steps "in the absence of certainty over the arrangements for the UK's departure from the EU". |
| Premier Foods said it expected to spend up to £10m on the preparations. | Premier Foods said it expected to spend up to £10m on the preparations. |
| It also hopes to sell its Ambrosia custard and creamed rice business. | It also hopes to sell its Ambrosia custard and creamed rice business. |
| It said it was having "discussions with third parties regarding the potential disposal" of the brand, as well as the factory in Devon where the products are made. | It said it was having "discussions with third parties regarding the potential disposal" of the brand, as well as the factory in Devon where the products are made. |
| Premier Foods said it had seen lower sales of custard products because of the hot summer and had reduced its promotional investment in the brand. | Premier Foods said it had seen lower sales of custard products because of the hot summer and had reduced its promotional investment in the brand. |
| The company's shares were up more than 2% in Tuesday morning trading. | |
| Delays risk | Delays risk |
| "In the absence of certainty over the arrangements for the UK's departure from the EU, the group shortly intends to start a process of building stocks of raw materials to protect the company against the risk of delays at ports," Premier Foods said. | "In the absence of certainty over the arrangements for the UK's departure from the EU, the group shortly intends to start a process of building stocks of raw materials to protect the company against the risk of delays at ports," Premier Foods said. |
| "Potentially this action will cause an adverse movement of up to £10m in working capital during quarter four, which we would expect to reverse the following financial year as the situation normalises." | "Potentially this action will cause an adverse movement of up to £10m in working capital during quarter four, which we would expect to reverse the following financial year as the situation normalises." |
| Premier Foods said that "like all businesses", it had spent several months planning on "a range of scenarios subject to the nature of any Brexit deal that is reached". | Premier Foods said that "like all businesses", it had spent several months planning on "a range of scenarios subject to the nature of any Brexit deal that is reached". |
| "As part of this, Premier Foods have a cross-functional team in place which continues to keep the possible implications to our business under review," it added. | "As part of this, Premier Foods have a cross-functional team in place which continues to keep the possible implications to our business under review," it added. |
| "This is purely a precautionary measure as Premier Foods, like all companies, ensures it's prepared for any Brexit scenario." | "This is purely a precautionary measure as Premier Foods, like all companies, ensures it's prepared for any Brexit scenario." |
| Boss quits | Boss quits |
| Meanwhile, chief executive Gavin Darby has said he will step down at the end of January. | Meanwhile, chief executive Gavin Darby has said he will step down at the end of January. |
| He said he would be leaving on the sixth anniversary of his joining Premier Foods. | He said he would be leaving on the sixth anniversary of his joining Premier Foods. |
| Mr Darby's announcement of his imminent departure comes almost four months after he survived a bid to oust him at the company's annual meeting. | Mr Darby's announcement of his imminent departure comes almost four months after he survived a bid to oust him at the company's annual meeting. |
| Activist hedge fund Oasis Management, the firm's second-largest shareholder, had called for him to resign, a call supported by 41% of shareholders. | Activist hedge fund Oasis Management, the firm's second-largest shareholder, had called for him to resign, a call supported by 41% of shareholders. |
| Premier Foods has been under fire over a number of issues, including its failure to lift its share price above the 65p-a-share bid offered by US condiment giant McCormick in 2016. | Premier Foods has been under fire over a number of issues, including its failure to lift its share price above the 65p-a-share bid offered by US condiment giant McCormick in 2016. |
| However, the firm's first-half results have shown a 14% profit rise. | However, the firm's first-half results have shown a 14% profit rise. |
| Adjusted pre-tax profit was £30.2m, up from £26.4m in the same period a year earlier. | Adjusted pre-tax profit was £30.2m, up from £26.4m in the same period a year earlier. |