Uniq slide forces poultry sell-off

UNIQ, the chilled foods group, has put its British poultry operations up for sale after being hit by the loss of a major Burger King contract and the decline in demand since the bird flu epidemic.

Profits at the division, which makes breaded chicken and turkey meals, have collapsed from £5m last year to an expected loss of £3m in the current financial year. Analysts expect a sale price of a lowly £10m to £20m.

It has been hit especially hard by bird flu as it does not rear its own poultry, relying instead on shipping it in from outside suppliers.

Although the disease outbreak in Asia has hit perceptions of the business, it was last spring's epidemic in Holland that caused the operation's worst crisis.

Shareholders were concerned that Uniq had announced a sale process before a deal had been agreed. One said it gave rise to suspicions that serious buyers could be few and far between. Venture capitalists ruled themselves out because there is little value to be added to the product.

Trade buyers such as Norfolk turkey tycoon Bernard Matthews and Grampian Country Food were cited as possible buyers for the business, which employs 600 staff at two plants in Yorkshire.