Uniq chief resigns after profits alert

Shares in Uniq dived 32 per cent after the convenience food group, formerly known as Unigate, parted company with its chief executive and issued a profit warning.

Uniq, which makes Shape yoghurts and Utterly Butterly spreads, blamed disappointing sales in France and at its St Ivel yoghurts business as it cut profit forecasts at its convenience food unit for the second time in two months. It said that the board revised its outlook and that profits for the convenience foods business are likely to be "below last year and substantially below its expectations" two months ago.

Its shares plunged 60p to a record low of 125p, valuing the company at £144m. The stock peaked above700p in 1998.

Sources close to the company said Terry Stannard, the chief executive, had left because the board held him accountable for the deterioration in sales and poor strategy execution. Analysts were not surprised by Mr Stannard's departure and shaved 20 to 30 per cent off their full-year operating profit forecasts.

Nigel Stapleton, who joined Uniq as non-executive chairman in July, will step in as executive chairman while the company searches for a new chief executive. Mr Stapleton is reviewing the St Ivel yoghurts business, which has been hit by increased competition and rising raw material costs. Its main competitors include Northern Foods' Ski yoghurts and the market-leading Mueller yoghurts, owned by Molkerei Alois Mueller of Germany.

The company is counting on improvements in its French foods business to bolster second-half profits. Uniq is trying to reposition itself as a pure convenience-foods maker.