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Retail & Consumer

Hovis losses widen amid ongoing merger talks with Kingsmill owner

Bakery group Hovis, which is backed by private equity firm Endless, saw its pre-tax losses increase from £3.6m to £4.7m in the year to 28 September, 2024, new accounts show

Hovis could be set to merge with Kingsmill.(Image: PA)

Bread manufacturer Hovis has reported widening losses whilst continuing discussions about a potential merger with Kingsmill's parent company, newly filed accounts have disclosed.

The company, which is supported by private equity firm Endless, witnessed its pre-tax losses increase from £3.6m to £4.7m during the year ending 28 September, 2024, as reported by .

Fresh filings lodged with Companies House reveal that revenue reached £446.8m over the 12-month period, representing a decline from the previous year's £489m.

These figures emerge following confirmation in May that Associated British Foods (ABF) had begun discussions to combine its Kingsmill operation with Hovis.

ABF indicated at the time that the negotiations were driven by a "very challenging" marketplace for its offerings.

The previous month saw ABF announce an operating loss for Allied Bakeries, its subsidiary responsible for Kingsmill products.

Hovis battles ‘significant price inflation’

A board-approved statement declared: "The group has achieved positive financial progress despite continued tough trading conditions.

"This is credit to the hard work and dedication of our fantastic Hovis colleagues across our bakeries and distribution centres who ensure our quality and service is unmatched in the market.