FOOD, furniture and housebuilding group Hillsdown Holdings duly unveiled its promised restructuring programme at the annual meeting yesterday.

Shareholders, anxious to see how this sluggish, somewhat hotch-potch of a company could change its spots, heard ''far-reaching'' plans to hive-off two businesses and transform Hillsdown into a focused grocery foods group while returning cash to shareholders from sales proceeds.

It aims to create three separately-quoted businesses by demerging its chilled foods division and its housing arm Fairview New Homes which provides low to medium-cost housing in South-east England.

''We believe that the restructuring proposals we have outlined, which are both imaginative and far-reaching, will deliver increased value to our shareholders,'' said chairman Sir John Nott, the former Defence Secretary.

Hillsdown also plans to sell its furniture division - which comprises Christie-Tyler, Walker & Home, and Carleton - as well as other businesses and aims to return a ''significant'' amount of cash to its shareholders as a result.

Analysts estimated the plans could raise some #600m, of which half could be returned to shareholders and the rest used towards reducing debt.

Initial market reaction was a 9.5p rise (3%) in the share price before it slipped back to stand at 189p, up 2.5p on the day. The shares, which have been lacklustre performers, stood at 169p at the time of the disappointingly dull full-year results in March when profits before tax and exceptionals were flat at #153m.

It was then the board pledged to look at a range of options to enhance shareholder value.

''The market was expecting something like this and it offers shareholders much greater choice going forward,'' said one analyst yesterday. Brokers have put a value of between 180p and 220p on Hillsdown.

Market speculation had centred on splitting off the furniture and housebuilding divisions with estimates for the combined worth of the two ranging from #450m to #550m. The group said that with the furniture business, shareholder value, following approaches from potential buyers, is ''likely to be maximised through a sale rather than a demerger''.

It is expected that the demerger of the chilled foods division and Fairview New Homes, will be concluded by October.

Meanwhile, the Typhoo tea-to-Chivers business, one of the UK's top grocery operations, will retain the Hillsdown name and quote. The refocused Hillsdown will have four key businesses - canning, preserves, hot beverages, which includes the Typhoo tea brand, and UK biscuits.

Hillsdown also intends to sell its potatoes, Continental biscuits and wines and spirits operations as market conditions allow.

With the review complete, George Greener is to step down as chief executive this summer and will be replaced by Michael Teacher, a former divisional head.

Finance director Ray Mackie has decided to step down with immediate effect, to be replaced by his deputy, Keith Buchanan.