UPDATE 1-China Food FY profit falls; says 2010 prospects strong

* FY pretax profit 2.8 mln stg vs 7.5 mln stg a yr ago

* FY revenue falls 21 pct to 30.1 mln stg

* Sees new factory to start production in 2010

* Sees opportunity from expansion of supermarkets in China

* Shares up 9 pct
(Adds details)

March 22 (BestGrowthStock) – China Food (CFC.L: ), maker of cooking
sauces and dips, posted a 62 percent fall in full-year pretax
profit, but said trading in the second half improved and it
expected the positive momentum to continue in 2010.

The provider of consumer products and animal feeds said it
was on track to complete the construction of a new factory and
start production in 2010. This would increase its capacity by
about 50 percent or 50,000 tonnes, China Food said.

The company said if it secured additional banking
facilities for the new factory it could increase the rate of
production and fill additional silos.

“2010 has started well, with current trading volumes
growing month on month,” Chairman John McLean said in a
statement.

China Food, whose sauces are sold at Tesco (TSCO.L: ),
Wal-Mart (WMT.N: ), Carrefour (CARR.PA: ) and Jialejia, said it
expects to benefit from the growth of international supermarket
chains in China.
For the year ended Dec. 31, 2009, the company posted pretax
profit of 2.8 million pounds ($4.2 million), down from 7.5
million pounds a year ago.

Revenue fell 21 percent to 30.1 million pounds.

Shares of the company were up 9 percent at 30 pence at 0841
GMT on Monday on the London Stock Exchange.

($1=.6666 Pound)

Stock Market Report

(Reporting by Shivani Singh in Bangalore; Editing by Anne
Pallivathuckal)

UPDATE 1-China Food FY profit falls; says 2010 prospects strong