LONDON (Alliance News) - Produce Investments PLC, the operator in the fresh potato sector, Friday reported higher profits and revenue for the full year, boosted by price increases and the acquisition of Cornwall potato grower, Rowe Farming Limited.
The company, engaged in the growing, sourcing and marketing of potatoes, increased its dividend per share by 50% to 5.46 pence.
Produce Investments said that revenues rose 34% during the year ending June 29, to GBP206.0 million, compared with revenues of GBP153.9 million the previous year, boosted by the high priced season, and nine-months of additional revenue from its acquisition of Rowe Farming in October 2012.
It said that it managed to increase its like-for-like turnover, as a result of increased selling prices, and the necessity to cover additional procurement costs. It said that the revenue increase is despite the wet UK weather conditions which destroyed potato crop, and resulted in supply shortages and higher prices. The company said that the integration of Rowe Farming went according to plan, and is trading ahead of expectations. It also said that its own brand, Greenvale Farm Fresh, continues to perform well.
Produce Investments reported a full-year pretax profit of GBP7.6 million, up 27% from GBP6.0 million a year earlier.
It said its net profit for the year was GBP6.1 million, compared with GBP5.0 million a year earlier.
The company said its net debt for the year quadrupled to GBP17.3 million, from GBP4.3 million a year earlier, due to the acquisition of Rowe Farming, along with the higher stock values at the year end, as a consequence of the high priced season.
Produce Investments shares were up 5.2% or 11.50 pence Friday afternoon, trading at 234.00 pence per share.
By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty
Copyright 2013 Alliance News Limited. All Rights Reserved.
