Berisford sees return to profit
Thursday 07 December 1995
The old commodities businesses such as British Sugar have long gone. Other peripheral interests such Eurotrailer, a rentals operation, were disposed of last year for a total of pounds 24m. Still to go are the agribusiness division and some properties that are being smartened up for sale.
Berisford now has two legs: its Magnet kitchens and joinery division, which was bought nearly two years ago, and the American catering equipment business, Welbilt, which was acquired earlier this year.
Given the problems in the housing market and the string of dire announcements that have come from other DIY and building materials companies, the market was braced for bad news yesterday. Berisford shares plunged 15 per cent in June following a Magnet-induced profits warning.
In fact, the outcome was better than feared, pushing the shares up 17p to 190p. Pre-tax profits for the year to September were pounds 26.9m after last year' pounds 3.2m loss. It is Berisford's first full-year profit for five years.
Though operating in tough conditions, Magnet is performing creditably. Its profits increased from pounds 6.2m to pounds 10.2m though there has been some sacrifice in the margin over the second half. Costs have been cut via job losses and a factory closure. But pounds 12m has been invested in a new distribution fleet and refurbished showrooms.
Welbilt turned in pounds 28m in its first period and looks a good deal. Welbilt is hoping to ride on the back of the fast-food expansion world-wide.
With pounds 111m net cash Berisford can easily fund expansion. Targets are likely to be smaller building supplies businesses whose products can be sold through Magnet's 200 outlets. At Welbilt the moves are likely to be into related areas such as a commercial dishwasher manufacturer.
With profits of pounds 37m forecast this year, the shares stand on a forward rating of less than 12. Attractive.
- 1 I was a Woman Against Feminism too
- 2 Fifty Shades of Grey movie trailer released: First look at Jamie Dornan as Christian Grey
- 3 Is Gideon Levy the most hated man in Israel or just the most heroic?
- 4 Students offered grants if they tweet pro-Israeli propaganda
Vladimir Putin employs a full-time food taster to ensure his meals aren't poisoned
Peaches Geldof: Her final day – and her fatal decision
Students offered grants if they tweet pro-Israeli propaganda
Israel-Gaza conflict: Israel may have committed war crimes, says UN human rights chief
John Barrowman praised for Commonwealth Games opening ceremony gay kiss
Malaysia Airlines MH17 crash: Vladimir Putin is given 'one last chance' to end hostilities in Ukraine
The 'scroungers’ fight back: The welfare claimants battling to alter stereotypes
The truth about conspiracy theories is that some require considering
Arizona execution lasts two hours as killer Joseph Wood left 'snorting and gasping' for air
Malaysia Airlines MH17 crash: Ukrainian military jet was flying close to passenger plane before it was shot down, says Russian officer
Malaysia Airlines MH17 crash: Massive rise in sale of British arms to Russia
iJobs Money & Business
£18000 - £20000 per annum + OTE £25K: SThree: SThree Group has been well estab...
competitive: Progressive Recruitment: This really is a fantastic chance to joi...
£40000 - £60000 per annum + BONUS + BENEFITS: Harrington Starr: CXL, Triple Po...
£60000 - £75000 per annum + BONUS + BENEFITS: Harrington Starr: Business Anal...