Insider Media Limited

Leicester-based Brookes Avana is expected to record reduced sales and an increased trading loss in 2011 after contract losses under the previous ownership.

New owner Boparan Holdings has high hopes for the business and expects it to return to profitability over the next 12 to 24 months.

Brookes Avana, which consists of RF Brookes chilled foods and Avana Bakeries, was acquired from Premier Foods last month (December) by chicken magnate Ranjit Singh Boparan in a £30m deal.

For the year ended 31 December 2010, the company had sales of £203.6m and made a trading loss of £100,000.

"Brookes Avana is an excellent strategic fit, with good positions in chilled and bakery," Boparan said.

"We believe that with our strong customer relationships, focus on cost and Brookes Avana's high-quality heritage, we can return the business to profitability over the next 12 to 24 months."

Elsewhere. a resurgence in sales of the Goodfella's pizza brand reflected growth across Boparan Holdings.

The group upped first quarter revenue to £565m for the 13 weeks to 29 October by the company which said like-for-like sales increased by 10 per cent.

In results for its first quarter results, Boparan Holdings said it was likely the expected full-year addition of between £15m to £25m from the takeover of Yorkshire-headquartered Northern Foods would be achieved.

Birmingham-headquartered Boparan Holdings, the parent company of the 2 Sisters Food Group, said it had experienced "strong sales growth" in its poultry division – the cornerstone of its trading – while there was also growth in ready meals, sandwiches and salads and chilled pizza.

"The first quarter of our new financial year has seen a solid start, despite the continued challenging trading and consumer environment," said chief executive Ranjit Singh Boparan."

Looking ahead, Boparan said after a slow start to its second quarter it expected to post a solid trading performance.

In the Christmas period, which the company said was "challenging and increasingly promotional", Boparan sold almost 20 million steamed puddings, ten million tins of seasonal biscuit assortment tins and 2.5 million ready-meal accompaniments.