Princes Group revenue drops after lacklustre flotation

Princes Group, the Liverpool-based food supplier best known for its tinned tuna and Crisp N Dry cooking oil, has reported a decline in revenue following what analysts observed was a subdued listing on the London Stock Exchange. The company, which floated last month, saw its share price fluctuate as investors analysed a trading update described as containing limited detail. At the close of trading on Tuesday, shares had fallen by 3.6 per cent to 435.5p.

In its nine-month trading update to the end of September, Princes Group reported revenues of £1.4 billion, down 5.7 per cent compared to the previous year. The company attributed the decline to deflationary pricing across raw materials, which affected revenue due to the group’s pass-through pricing model with customers. Revenue fell across all major markets, including the UK, Italy, and Germany.

Despite the fall in sales, Princes achieved a significant increase in earnings before interest, taxes, and other deductions, which rose 51.5 per cent to £111.1 million. This improvement reflects cost control efforts, better margins, and operational efficiencies. The company did not disclose a pre-tax profit figure in its update. Chief executive Simon Harrison described the period as a milestone for Princes, highlighting improved earnings, enhanced efficiency, and stronger commercial relationships.

Princes, founded in 1880, has grown to become one of Europe’s largest grocery suppliers. Acquired last year by Milan-listed New Princes, formerly Newlat Food, for £700 million, the group raised its valuation to £1.16 billion during the IPO, although shares have dipped by about 5 per cent since the listing.

The IPO was regarded as a litmus test for the London Stock Exchange, which is striving to compete with global markets. In the year to September, London raised only $210 million from IPOs, compared with $52.8 billion raised in New York. The listing follows a string of new floats, with government figures expressing optimism for future IPOs in London, including from major names in technology and finance.

Princes has expanded in recent years through nearly two dozen acquisitions and remains committed to further growth. The company plans to utilise capital raised from the listing to pursue additional mergers and acquisitions, strengthening its position in European markets. At the end of September, adjusted net cash stood at £268.2 million, providing substantial financial flexibility for further investment.