Convenience food group Greencore has announced plans to raise up to £90 million through the sale of new shares.

The announcement was made as the London listed group published full year results – a day ahead of schedule – showing group operating profit down 87% on the previous year to £12.9 million.

Earnings per share plunged 82% from 16 pence last year to just below 3 pence per share for the 2020 financial year.

Group revenue declined by 12.5% to €1.265 billion.

"This has been an exceptionally challenging year for Greencore," CEO Patrick Coveney said.

"There is a direct correlation between the performance of food to go and the nation's ability to move around freely. As a result, that part of our business has been significantly impacted by the social restrictions that have been put in place as a result of Covid-19."

He said the group remained confident that demand for food to go categories would recover strongly as the effect of Covid-19 recedes.

He added that they were 'encouraged' by the uplift in demand witnessed in the final trading quarter as the UK economy slowly reopened.

In a statement accompanying the results, Greencore said the share placement decision was made to protect and support growth in the business. 

Directors and members of the Group's senior management team will participate 'alongside the placing and intend to contribute around £0.7m in total,' the statement said.

The proposed placing will enable the company to proactively manage debt levels to ensure appropriate liquidity and leverage headroom, it said.

The company reaffirmed its intention not to proceed with paying a full year dividend for 2020 or an interim dividend for next year.