SWINDON-based Kleeneze signalled it was poised to deliver steady growth after completing a restructuring of the business.

Chief executive George Pollock said the board was optimistic of an upturn after seeing profits tumble 42 per cent in the last 12 months. The home shopping company sold its struggling meat processing division last month and is now focused on its catalogue and direct sales operations.

Mr Pollock said further strong progress was expected in the core Kleeneze household products arm after more distributors were brought on board.

He added the order book at Christmas hamper and voucher business Farepak was already ahead of 2001.

Shares in the group surged 15p to 125p after the update, an increase of more than 13 per cent, as the total dividend was left unchanged at 8.36p per share.

Annual results out today showed operating profits at Farepak dived by 48 per cent in the year to April 30, in line with a profits warning issued earlier this year.

And the impact of the foot and mouth crisis was blamed for a sharp downturn at the Tranfood meat packing business.

Higher raw material costs contributed to operating losses of £200,000, compared with profits of £1.3m a year ago.

Kleeneze is based at the Westmead Industrial estate in Westlea.

Bottom-line pre-tax profits fell to £6.3m from £10.8m a year ago as turnover across the group dropped 14 per cent to £212.6m.