Greencore chief executive Mr David Dilger is convinced the group will meet its target of generating asset sales of £120 million sterling (#199 million) from its Hazlewood acquisition by May next year. Mr Dilger was speaking after Greencore produced half-year results including a three-month contribution from Hazlewood, whose #582 million (£458 million) acquisition was completed in January.

Hazlewood chief executive Mr Peter Woodall said Greencore aimed to cut the number of Hazlewood business from 38 to about 20 through mergers, closures and asset sales. Mr Woodall said Greencore was looking at up to 14 disposals and rejected a suggestion that the current environment was not a good one to be selling food businesses.

"Some will be easy to sell, some more difficult but we are confident we can meet our objective," he said.

Details on the integration were included with Greencore's results for the six months to the end of March. Hazlewood was "modestly earnings-enhancing" in the period, Mr Dilger said. Reflecting the inclusion of Hazlewood, Greencore's halfyear sales rose to #729 million from #420 million while operating profits were up to #46.7 million from #35.3 million, of which Hazlewood contributed #16 million.

At the pre-tax level, Hazlewood rationalisation charges and a near-trebling of interest charges to #22 million, saw profits fall to #14.8 million from #32.5 million.

Adjusting for exceptionals charges and goodwill, earnings per share were down from 15 cents to 14.2 cents. The interim dividend is unchanged at 4.38 cents per share.

The "old" Greencore had a difficult first half with operating profits down #5 million to #30.5 million. The main difficulties were in the British baking business and flour milling in Ireland.

"The British baking business suffered the most difficult conditions we've ever seen," said Mr Dilger, with the business hit by low prices and below-cost selling by the British multiples. "But we're past the worst and the second half for bread will be better and will be ahead of last year," he added.

The Irish flour business was hit by low-cost imports, with British flour millers looking for alternative markets for their flour. Mr Dilger said the Irish flour market, where Greencore has three mills and IAWS two, had to rationalise, although he would not be drawn on how this might be brought about.