James Crean has delayed the publication of its annual results due to difficulties predicting the scale of its losses for this year. Shares in the holding company were suspended at 18 cents on both the London and Dublin stock exchanges yesterday after Crean's board put out a short statement.

The company said the release of the results for the 12 months to the end of December 2000 had been delayed. No reason was given, but the statement added that the directors hoped "the duration of this suspension will be as short as reasonably possible".

Sources close to the company said Crean and its auditors, Pricewaterhouse-Coopers, had been unable to agree the size of a provision needed to cover the losses that would be racked up by Crean's US-based food business this year. The need to make a provision was flagged in a trading statement issued last March and a provisional figure of £7.5 million (€9.5 million) was suggested "subject to change following further internal review and external audit".

Goodbody Stockbrokers forecast full-year losses of €15.7 million at the group, including the £7.5 million provision.

Sources close to Crean's directors said yesterday that it was a question of "getting the figure right" rather than simply having to make a larger provision.

In March, Crean warned it would have to make a provision in the 2000 accounts "to cover potential liabilities arising from the deteriorating trading position, other potential liabilities and a reduction in the carrying value of certain non-trading assets".

Both of its US operations are doing badly. Freezer Queen, which makes frozen meals aimed at the "value segment" of the market, has seen sales fall in the early part of the year. Valley Fresh, a tinned poultry producer, is also suffering from a slump in sales and lower prices as a result of the market being over-supplied with broiler meat.

Both companies have been in breach of their banking covenants since the end of March and are trying to reschedule their $40 million debt. It is understood that the decision to delay the 2000 figures is not related to the debt problem.

Mr Ray McLoughlin, the chairman and chief executive of Crean, was not available for comment yesterday. Neither was Mr Martin Delany, the chief operations officer.

Along with the seven other board members, they are trying to find a buyer for James Crean in order to provide an exit mechanism for shareholders.

Last March, the company said it was in discussions about a possible offer. No details were given but the board said they it did not think the price would exceed 35 cents, which values Crean at €16 million.

It is understood the London Stock Exchange turned down a request for a derogation which would have allowed Crean avoid suspension even though it had missed the four-month deadline for the publication of results. The four-month deadline was introduced this year and replaces the previous deadline of six months.