Premier Foods - Q1 2011

Premier Foods is one of the UK's leading food companies and owns many of the UK's most recognisable food brands including Hovis bread, Homepride cooking sauces and Mr Kipling cakes. Premier foods expanded aggressively between 2005 and 2007 and became synonymous with the exuberance associated with easy credit, having borrowed money to fund the takeover of the UK arm of Campbell's Soup in 2006 and Hovis maker RHM in 2007. As credit conditions worsened, Premier's interest payments rocketed, contributing to hefty pre-tax losses in both 2007 and 2008. Eventually the firm was forced to recapitalise with a heavily dilutive share

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