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Activist investor Oasis Management has become Greencore’s largest shareholder, a report in the Financial Times notes, adding pressure on the group to accelerate turnaround plans.

The FT reports the Hong Kong-based fund has grown its stake in the sandwich maker from 5.1% to 10% to become Greencore’s largest single shareholder.

Oasis has a history of pushing for change in consumer companies, including campaigns as a shareholder at Premier Foods and The Restaurant Group

The FT says Oasis has been frustrated that the London-listed company has not paid a dividend since 2020, despite having a lower debt burden than UK consumer group contemporaries Premier Foods and Bakkavor Group.

The paper reports that Oasis is content with the company’s management and turnaround plans, which include shedding unprofitable client contracts, job cuts and increasing manufacturing efficiencies, but believes these can be carried out quicker.

Greencore declined to comment on the FT’s report.

At its most recent financial results in May, Greencore has bounced back to the black in the first half and lifted forecasts for the year amid signs its transformation plan is delivering results.

The sandwich maker increased like-for-like sales by 4.1% in the six months to 29 March, with total revenues down 6.4% to £866.1m as it exited low-margin contracts.

The recovery plan implemented by CEO Dalton Philips also led to a £14.7m first-half pre-tax profit, compared with a £6.2m loss a year ago.

Morning update

On the markets this morning, the FTSE 100 is up 0.4% to 8,253.1pts.

Risers include Kerry Group, up 3.4% to €78.55, Nichols, up 2.3% to 1,054p and Ocado Group, up 2.1% to 387.5p.

Fallers include C&C Group, down 1% to 162.8p, Naked Wines, down 0.7% to 60.7p and SSP Group, down 0.6% to 177.2p.

Yesterday in the City

The FTSE 100 was up another 0.4% to 8,223.3pts on top of a 0.7% rise on Wednesday.

Risers included Ocado Group, up 4.6% to 379.5p, SSP Group, up 3.2% to 178.2p, AG Barr, up 2.8% to 629p, Sainsbury’s, up 2.8% to 268p, C&C Group, up 2.8% to 164.4p, WH Smith, up 2.6% to 1,213p and McBride, up 2.6% to 141p.

The day’s fallers included Kerry Group, down 6.2% to €76.00, Nichols, down 1% to 1,030p, Cranswick, down 0.8% to 4,520p, THG, down 0.4% to 68.5p and Hilton Food Group, down 0.2% to 906p.

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