LONDON (Alliance News) - Fresh potato and daffodil producer Produce Investments PLC on Wednesday said it swung to a pretax loss in the first half due to one-off restructuring costs, though revenue also dipped.
Produce said its pretax loss for the half to the end of December was GBP198,000, compared to a GBP1.9 million profit a year earlier, mainly due to costs related to the closure of its packing facility in Kent, which also produced redundancy expenses.
Revenue dipped to GBP78.5 million from GBP80.8 million, mainly due to lower volumes and sales through its Swancote Foods subsidiary, which was forced to recall products earlier in the year after traces of metal were found in some of its goods.
Produce will pay an interim dividend of 2.44 pence per share, up from 2.39p a year earlier, as it reiterated its confidence on meeting full-year expectations.
"The board expects both the market and the retail market to remain challenging. However the market is relatively stable and the recent acquisitions and site rationalisation puts Produce in a more robust position to cope with these pressures. With this stronger business model, the board remains confident that Produce is well positioned to grow organically and also take advantage of any acquisition opportunities," said Chief Executive Angus Armstrong.
Shares in Produce were up 0.7% to 155.00p.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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