Food manufacturing presents challenges from evolving consumer tastes and supermarket demands to stringent safety regulations and rising costs. Ingredient inflation, higher employee wages, and escalating energy bills further pressure profitability, exacerbated by supply chain disruptions affecting transport and packaging.

Greencore, a chilled convenience food group, is poised to benefit from food premiumisation as consumers opt for luxury ranges over eating out. Its recent takeover of rival Bakkavor for £1.5bn has expanded its product portfolio and strengthened its market position. Greencore now expects adjusted operating profit to exceed market expectations, projecting £15mn in cost savings from the acquisition this year and at least £80mn by 2029. Analysts view Greencore equity as an attractive buy.

Kier Group, a UK public sector and infrastructure contractor, reports strong revenue and profit for the year to June 2026, with 90% of expected revenue for 2027 already secured. The company has significantly improved its balance sheet, moving from net debt to substantial net cash. Kier trades at a discount to its peers, which is expected to narrow as its cash metrics improve.

Gateley, a professional services group, has seen its share price halve despite increasing revenues for an eleventh consecutive year. While organic revenue growth is steady, the board reduced its final dividend. Profit margins have tightened, impacting its valuation, and its prospects do not currently suggest a significant comeback.