Northern Foods on track for FY

LONDON (Reuters) - Food manufacturer Northern Foods (NFDS.L) said it was on track to meet market expectations for the full-year and would invest 26.5 million pounds in its Fox's biscuits brand over the next 18 months.

The group, which makes Goodfella's pizza and is Britain's biggest maker of Christmas puddings, reported a pretax profit of 12.9 million pounds for the six months to September 26, up from 12.7 million the year before.

"Market conditions remain competitive but at this stage of the year, our sales and profit expectations for the current financial year remain unchanged, and in line with market expectations," said Chief Executive Stefan Barden.

Northern, which makes branded and own-label goods for retailers as diverse as Marks & Spencer (MKS.L) and Aldi, is planning to introduce new automated technology at its Fox's Biscuits plants in Batley, Kirkham, and Uttoxeter in England.

The company said the investment would generate operating efficiencies and improve margins.

It expects to cut 220 jobs as part of the changes which will generate a return on investment in excess of 20 percent and be earnings enhancing by the 2011/12 financial year.

The company kept its interim dividend unchanged at 1.55 pence. Shares in Northern closed on Monday at 65 pence, valuing the business at 300 million pounds.

(Reporting by Matt Scuffham; Editing by Rhys Jones)