Princes Group has reported a 51.5% year-on-year earnings increase to £111.1m in the nine months to 30 September, after it was admitted to the London Stock Exchange.

The food and beverage firm saw its revenue total £1.42bn, dropping by 5.7%. Princes said this came with a focus on earnings quality, as deflationary pricing conditions across several core raw materials impacted revenue.

However, Princes recorded a free cash flow of £136.5m, which it said reflected sustained working capital discipline and supplier management.

Chief executive officer at Princes, Simon Harrison, commented: "This has been a milestone period for Princes, with our admission to trading on the London Stock Exchange. We have taken decisive actions to enhance earnings quality, improve efficiency and strengthen our commercial partnerships."

Princes revealed it was trading in line with expectations and that it remains confident in delivering a full-year performance in line with management’s internal budget.

Its medium-term targets have listed incremental revenue of between £1bn and £1.5bn through M&A, with compound organic revenue growth increasing by more than 3%.

The group said it remains focused on executing its strategy of profitable, cash-generating growth, supported by a targeted pipeline of M&A opportunities in core categories and geographies.

Investment director at AJ Bell, Russ Mould, added: "Princes’ IPO had all the appeal of a tin can stuck at the back of a cupboard – not very exciting but still a potential source of sustenance for those willing to be brave.

"The lacklustre investor demand for its stock offer saw the shares priced at the bottom of the IPO range and fall further once they hit the market. It wasn’t a great start to life as a listed entity, so it was inevitable that management would have to work harder to bang the drum and convince more people that the business is worth a look.

"Princes has presented a nine-month trading period, two thirds of which was already covered in its IPO prospectus. Investors weren’t sure how to consume the limited information as the shares moved up and down like a yo-yo in early trading. A lot of investors will be sitting on the sidelines until there is a full set of financial results by which to judge the company post-listing. Princes will have to let its business performance do the talking rather than management if it is to truly win over the market."

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