Premier Foods makes £230m loss The company, which owns Mr Kippling and Hovis, said cost inflation and promotional activity had put pressure on its trading profit, which fell from £245.7m to £173.7m - before impairment and exceptional items. Its pre tax profit went from £28.5m in 2010 to a £230m loss thanks to a£282m impairment charge. Although the new £1.4bn banking facility is until June 2016 the way the loan agreement has been structured the company will have to almost half its indebtedness within two years. Putting pressure on the new management team to deliver both the ambitious disposal programme and stabilising profits. The company has managed to gain agreement from its pension fund for a two year holiday on deficit payments which will help it manage its debt reduction. It its morning note, Shore Capital said: "Premier Foods is no longer the basket case that it was in prior times," crediting Mr Clarke and his team for pulling the company bank from the brink. In Premier Food's statement Mr Clarke said: "Having put the financing and strategic building blocks in place, our immediate priorities are to implement this re-financing package, continue stabilising the business, re-focus the portfolio and invest in our future growth." Premier shares fell more than 4pc in early trading to 11.65p.