An upbeat outlook for the remainder of the year sent shares in sandwiches, ready meals and snacking group Greencore Group PLC (LON:GNC) shooting higher.
Patrick Coveney, chief executive, said problems in the US and exiting cakes and desserts had hampered the first half but he expects the US business to improve and see strong organic growth overall.
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Revenues in the half year to March rose 22.6% to £1.24bn, but underlying profits were only 5.6% better at £47.2mln and including restructuring costs Greencore posted a loss of £18.1mln.
The second half is traditionally stronger, however, and the company repeated its forecast of underlying earnings per share between 14.7p-15.7p (15.4p) for the full year.
Shore Capital said it was a solid half-year though it does not intend to change its forecast of earnings of 14.8p.
Trading on an earnings multiple 10.1 times and yielding 3.7%, a hold said the broker.
Shares rose 5% to 165.2p.
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