DALEPAK owner Northern Foods yesterday put nearly half its business up for sale as part of a restructuring aimed at turning its fortunes around.

The company, which is not planning to sell its Dalepak frozen foods factory, in Leeming Bar, near Northallerton, North Yorkshire, expects to raise £200m from the sale of businesses including NFT Distribution and Smiths Flour Milling.

The company, based in Leeds, said it would dispose of ventures accounting for about 40 per cent of its revenues to focus on high-performing products, such as Goodfella's Pizzas and Fox's Biscuits.

The restructuring, which will see about 150 head office jobs lost, comes after a three-month business review in which Northern reacted to healthier eating trends and disappointing sales figures.

The company yesterday posted a 27 per cent drop in pre-tax profits for the year to April 1 - down from £62.2m a year ago to £45.1m. Restructuring and other costs pushed the net figure £5m into the red.

Revenues were up from £1.42bn to £1.44bn last year, as a strong performance in Northern's frozen division was offset by weaker results in chilled foods and the bakery operation, which were hit by "major energy cost rises and a tough competitive environment".

Northern cut its dividend from 9.05p a share to 4¼p, but said it had delivered more than £21m of cost savings in the year.

Chief executive Pat O'Driscoll said the restructured operation would focus on branded frozen foods and ready-meals.

"This year is clearly one of change and transition for Northern Foods as our disposals progress," she said.

"The first half is likely to be weaker than the comparable period last year because of tough trading, but we are confident that the plans we have announced will create a leaner and more profitable business going forward."

Northern will focus on five key categories - pizza, biscuits, ready meals, sand- wiches and Christmas puddings - and sell its non-core businesses.

It will sell its distribution, flour milling, cakes and speciality bread, and chilled pastry products divisions, after two profit warnings so far this year.