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Buzle - apologies I have just seen your post - today's announcement shows they have been gnashing many a set of molars and pulling hair to sort out direction and how to get there - never easy when staff livelihoods are at stake
Mark Allen, Chief Executive of Dairy Crest, commented: "Dairy Crest is a broadly based business which has delivered against our strategy despite challenging trading conditions. Our Foods business has performed strongly and sales of our five key brands continue to grow. However, along with the rest of the sector, our Dairies business is under sustained pressure and we have to continue to act decisively to protect its future. The decision to consult on the closure of our Aintree and Fenstanton facilities has not been taken lightly, but we believe that this proposed restructuring of our Dairies business is the right decision for the long-term. We will do all we can to help employees who may be affected by these proposals. The proposals we are announcing today are part of a series of actions designed to restore our Dairies business to an acceptable level of profitability over the medium term. With lower net debts at the year end than we anticipated, the Group has positioned itself well to absorb the cash costs associated with these closures. The challenges in the liquid milk industry are further underlined by the disappointing loss of the Tesco liquid milk supply contract. However it represents just 3% of our total liquid milk volumes and has not driven the restructuring decisions which we are announcing. Tesco remains a large and important customer for our key UK brands Cathedral City, Country Life, Clover and Frijj. ".
Proposal to close Aintree and Fenstanton dairies The pre-close trading update indicated that Dairy Crest was looking at a range of options to restore its Dairies business to a satisfactory level of profitability. Today the Board is announcing that the Company is entering into consultation with employees and their representatives on proposals to close two of the Group's dairies at Aintree, Liverpool and Fenstanton, Cambridgeshire later this year. The proposed closures of these dairies has been facilitated by the ongoing £75 million investment programme in the Dairies business. This has driven efficiencies and increased capacity at the Group's other three polybottle dairies at Severnside, Gloucestershire, Chadwell Heath, London and Foston, Derbyshire. Aintree is predominantly a glass-bottling dairy. There has been a fall in the sales of milk in glass bottles as residential sales continue to decline overall and customers increasingly opt for plastic bottles and milk bags. Dairy Crest will continue to supply residential customers with milk in glass bottles from its Hanworth dairy in London should Aintree close. At Fenstanton Dairy Crest packs milk into polybottles. Most of the volume here can be transferred to other, more highly invested Dairy Crest dairies. Dairy Crest anticipates that there will be cash exceptional costs associated with these closures of around £15 million, to be charged in 2012/13. It will review the March 2012 carrying value of assets at these sites and goodwill in its Dairies business in the light of these proposals. Dairy Crest expects to treat all these charges, together with any required impairment of goodwill, as exceptional items.
http://www.investegate.co.uk/Article.aspx?id=201204170702284673B
Sorry meant 'anyone know what st Hubert is worth? ' but got answer about £300m . Maybe they are expecting more quadra's must be some reason?
Could this selling a successful part of their operation be just to plug a hole made by quadra? Cant see why you'd want to sell a successful venture just because you cant make any more synergies. They say they want to reduce debt, how much will be left over for the shareholders sweetner? Dont smell right to me. Never saw shares do well after the offload of a profitable venture. St Hubert must not be doing well. The words used were 'increased profitability' are different to increased profits. Anyone know what quadra is worth?
Dairy Crest Group plc ("Dairy Crest") announces strategic review of its French branded spreads business ("St Hubert") Dairy Crest, the UK's leading dairy foods company, today announces that it is to commence a strategic review of its French branded spreads business. The review will evaluate all possible options available to Dairy Crest to maximise shareholder value, including a potential divestment of St Hubert. Since its acquisition in January 2007, St Hubert has been a successful part of the Dairy Crest group and has consistently increased its market share and profitability. However, Dairy Crest has been unable to make additional synergistic acquisitions in Continental Europe as it envisaged at the time of its acquisition of St Hubert and it believes that greater value may be generated for shareholders through the consideration of all the available options for St Hubert. A disposal would reduce Dairy Crest's debt and provide it with a number of alternatives which include releasing some proceeds to shareholders, investing in its core business and making strategic acquisitions of branded businesses in the UK. This would further improve Dairy Crest's strong position in the consolidating UK dairy market. Any acquisitions would be synergistic and made within strict financial criteria, as will any decision over the future of St Hubert. Whatever the results of the review, Dairy Crest will continue to develop its broadly based UK business including its strong portfolio of brands (Cathedral City, Country Life, Clover and Frijj). The Board also intends to continue with its progressive dividend policy. Dairy Crest expects to issue its full-year trading update on 29 March 2012 and its Preliminary Results for the year ending 31 March 2012 on 24 May 2012.
http://www.investegate.co.uk/Article.aspx?id=201203090700140180Z
Dairy Crest Group plc ("Dairy Crest") and Quadra Foods Limited On 2nd February 2012 Dairy Crest issued an Interim Management Statement in which it confirmed that overall trading was in line with its expectations. Its underlying trading has continued to be in line with expectations since that date. Dairy Crest wishes to inform the market that a customer, Quadra Foods Limited ('Quadra'), has called in Administrators. As a result Dairy Crest anticipates it will increase its bad debt provision by up to £4 million. This is the total debt owed to us by Quadra although we are looking at several options to reduce the amount involved. We expect to treat any charge as an exceptional item in 2011/12 and as such it will not impact on our dividend considerations. Dairy Crest has annual sales of £1.6 billion and this is an isolated incident. It will have no material effect on our year end borrowings.
http://www.investegate.co.uk/Article.aspx?id=201202130703282806X
Well worth it ...
http://www.investegate.co.uk/Article.aspx?id=201202020700136037W
Dairy Crest (DCG) said that it performed in-line with expectations over the nine months ended 31st December 2011, with like-for-like sales up 2% year-on-year. The company also noted 8% growth from its five core brands - which include Cathedral City and Clover - in the third quarter. Additionally, the cheese and butter manufacturer expects to deliver 20 million pounds of annual cost savings. Dairy Crest shares inched down by 3.2p to 320.5p.
Mark Allen, Chief Executive, commented: "This delivers security of funding in the medium term which is important to us in today's financial markets. We continue to reduce risk in our business."
Debt refinancing completed Dairy Crest is pleased to announce that it has successfully completed a debt refinancing by arranging a new bank facility that will mature in October 2016 and by raising additional debt private placement. In total, including existing debt private placement, Dairy Crest's facilities will remain broadly unchanged at over £600 million. A new five-year revolving credit facility of £170 million plus €150 million from a syndicate of five banks and £54.5 million ($85 million) of debt private placement will replace existing bank facilities of £340 million, consisting of £100 million that was due to mature in November 2011 and £85 million plus €175 million that was due to mature in July 2013. Key financial covenants remain unchanged but margins have increased slightly, reflecting current market conditions.
http://www.investegate.co.uk/Article.aspx?id=201110140700101570Q
Societe Generale initiates sell on Dairy Crest Group, target price 315p
http://www.investegate.co.uk/Article.aspx?id=201109190700104135O
Dairy Crest (DCG) expects first half profits to be slightly ahead of last year, with improved operating efficiency and increased sales prices offsetting higher input costs. Despite an increase in sales of its five main brands, which include Cathedral City and Clover, volumes are lower than during the same period last year. Additionally, net borrowings will be higher, due to increased capital investment and the purchase of MH Foods. The news cheesed off investors, with shares falling 0.8p to 337p.
a safe avon always in profit and a good dividend and the price not too bad
Panmure Gordon recommends sell Dairy Crest Group
Dairy Crest, the milk supplier behind Britain’s leading cheese brand Cathedral City, has signalled its intent to buy or develop its own yoghurt business to fill a gap in its portfolio created by the sale of its stake in a UK joint venture with Yoplait in 2009. Mark Allen, chief executive, said an agreement with the French food group that had prevented it competing in the UK yoghurt market for two years had ended in March, the Financial Times says.
Dairy Crest ekes out FY profit gain Date: Thursday 19 May 2011 LONDON (ShareCast) - A solid performance from its spreads and cheese businesses helped chilled foods firm Dairy Crest report a 5% increase in full year adjusted pre-tax profit as tough trading conditions in dairies continues. The maker of Clover and Cathedral City said adjusted pre-tax profit rose to £87.6m for year ended 31 March 2011 from £83.5m the year before. Pre-tax profit was flat at £77.8m while revenue fell 2% to £1.6bn during the year. Sales of its five key brands were up 7%. Commenting on the results chief executive Mark Allen said, "Results for the year demonstrate the benefit of being a broadly based business. A strong performance from our branded Spreads and Cheese businesses has more than offset tougher trading in Dairies." The group added that against a background of higher input costs and increasingly cash-constrained consumers it would continue to focus making efficiency improvements and invest long term in its brands. Dairy Crest made £20m in annual cost cuts during the year and has earmarked a further £20m for 2011/12. A final dividend of 14.2p has been proposed, up 4% from last year. CJ
http://www.investegate.co.uk/Index.aspx?searchtype=3&words=DCG
A chunkier yield of 5.6% is on offer at Dairy Crest (DCG). At 349p, the shares are cautiously rated on a price/earnings multiple of 7.6. The market is expecting profits to rise from £77 million to £85 million in the year to March and a further rise is expected. But will they reach the £100 million peak of 2009? Meanwhile, a partial restoration of the dividend - it was cut in two stages from 24.4p to 18.9p - should help the shares.