Bakkavör has seen a profit turnaround of £142.4 million for 2009 as the group narrowed its losses.

Bakkavör announced an improved set of yearly results, with a loss of £11.8m representing a significant profit turnaround of £142.4m on the £154m recorded at the end of 2008.

Earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 24.6 per cent to hit £135.1m for the 12-month period, exceeding the group's initial target by £5.1m.

The positive results were a result of the operational restructuring activity undertaken during the 2008-09 period, the group said, as a strong performance in its UK fresh prepared food business, where sales jumped five per cent.

For the first quarter of 2010, Bakkavör has forecast that EBITDA will amount to £29m, a potential year-on-year increase of 53 per cent.

Group chief executive ágúst Gumundsson said: "Our 2009 results demonstrate a strong improvement in profit delivery, good sales growth in our key UK fresh prepared foods business and a return to significant cash generation. After two years of considerable effort to return the business to more expected performance levels, we are very optimistic about our future prospects.

"I am also pleased to report that the group has now been fully refinanced following an agreement with the lenders to the Icelandic holding company. The agreement deleverages the group considerably with around half of the debt converting into equity and the remainder extended until 2014.

"Following the successful refinancing of the operating business early last year, the group has a secure financial platform from which to grow."

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