Bernard Matthews benefits from BSE
Thursday 20 March 1997
And all of these products have benefited from the beef crisis, which has shifted consumer preferences to other types of meat.
Beef products made up just a little more than 1 per cent of group turnover and the production line was eventually closed last year.
Bernard Matthews' total turnover rose by 17 per cent last year to pounds 355m, the operating profit rose by 27 per cent to a record pounds 26.9m and, even after a 60 per cent jump in interest costs to pounds 4.4m, profits before tax went up 20 per cent to pounds 22.6m.
Although the results, which showed earnings per share climbing by 21 per cent to 12.69p, were comfortably ahead of City forecasts, the shares dipped 5p to 119.5p.
The main concern among investors, who will receive a 20.9 per cent increase to 4.1p in the dividend, is the strength of sterling.
Exports from the UK account for only 5 per cent of Bernard Matthews' sales, but 15 per cent of the profit is generated overseas. And some imported meat products are now more competitively priced in the UK.
The price of imported soya bean meal has also reached record levels in spite of the strong pound.
However, profits in the current year were running ahead of 1996, Bernard Matthews, the chairman, said yesterday.
Capital expenditure, which was mainly spent on building new factories, reached a record pounds 33m, but net debt rose only pounds 19m to pounds 30m.
New factories in the UK and Hungary would start to contribute to profit this year and the Bernhard Bartsch group, bought for pounds 5m last November, would expand both sales and profits, the company said.
- 1 Nigel Farage: Me vs Russell Brand on Question Time – he's got the chest hair but where are his ideas?
- 2 Harry Potter fans can apply to the Hogwarts-inspired College of Wizardry
- 3 Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
- 4 Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
- 5 Orange Wednesdays are no more
Weather bomb in pictures: Storms cuts power for tens of thousands – and snow is on the way
Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
Russell Brand was rendered speechless on Question Time by this man
Fury at Airbus after it hints the super-jumbo may be mothballed
Disgruntled RBS worker writes hilarious open letter to Russell Brand after anti-capitalist publicity stunt leaves him hungry
Nigel Farage defends Kerry Smith 'ch***y' comment: 'If you are going for a Chinese, what do you say you’re going for?'
Nigel Farage's approval rating hits 'record low' as popularity suffers in wake of Ukip sex scandal
Rozanne Duncan: Ukip expels councillor for 'jaw-dropping' comments made in BBC TV interview
Pakistan school attack live: Taliban kill at least 132 children in 'horrifying' massacre
Sony hack: Angelina Jolie branded 'seriously out of her mind' in further embarrassing leaked email saga
iJobs Money & Business
£43500 per annum + pension + holidays: The Jenrick Group: Night Shift Operatio...
£20000 - £25000 per annum + OTE £40,000 + Car + Pension: SThree: SThree are a ...
£20000 - £25000 per annum + OTE £35K: SThree: We consistently strive to be the...
£20000 - £25000 per annum + OTE £35000: SThree: SThree are a global FTSE 250 b...