Watson & Philip puts problems behind it
Wednesday 18 June 1997
James Watson, chairman, said the multi-temperature "Distribution Plus" business which caused the problems was now developing well, with sales increasing by a half.
He said they were turning away lower margin business for the likes of schools and hospitals in favour of areas where "we can add value for our customers and make acceptable returns."
Major contract wins included a deal to supply the Rain Forest Cafes themed restaurant chain in the UK and Europe and La Belle Epoque, the London restaurant billed as Europe's biggest.
"The enhancement of our ability to supply chilled and frozen food leaves us well positioned for expected new business opportunities as they arise. We will continue to focus on managing maximum efficiency gains", he said.
The news prompted a 4p rise in Watson's shares to 436.5p yesterday, but they remain well short of the 466p they were at before October's warning.
The group unveiled pre-tax profits raised from pounds 6.78m to pounds 7.15m in the 26 weeks to April, a 24 per cent rise when exceptional items are stripped out. The interim dividend goes up 7.5 per cent to 5.7p.
The figures included a pounds 4.32m exceptional credit to cover expected income over the remaining three-year life of a now discontinued wholesaling contract to supply the Spar/VG retailing group. The move came after it became clear that there was no chance of the group resuming the work again. The credit was partially offset by a pounds 3.83m charge following a decision to exit vacant properties, mainly comprising surplus depots.
Food service operating profits rose 18 per cent to pounds 1.3m, but the main driver remained the Alldays convenience store division. That saw a 28 per cent increase to pounds 6.8m, including a 90 per cent jump in results for franchised operations to pounds 2.34m.
These are run through Alldays' unique regional development company network, which involves head franchisees being given the right to operate up to 40 stores in a given region, with financial backing from the group, in exchange for putting up pounds 100,000 of their own capital.
International Women's Day 2014: The shocking statistics that show why it is still so important
Feminist quotes to inspire you on the International Women's Day
Oscar Pistorius trial first week: Never mind a media scrum – murder case becomes bizarre safari following the tracks of a wounded lion
Belle Knox: How the porn star student from Duke University became bigger than Justin Bieber
International Women's Day 2014: Mothers and daughters around the world describe hopes and dreams in touching photographs
Apple's Tim Cook: Business isn’t just about making profit
Thousands of young people forced to go without food after benefits wrongly stopped under 'draconian' new sanctions regime
Ukraine crisis: New navy chief 'defects' and surrenders Crimean HQ as Putin claims ultranationalists forced intervention
Britain's top vet sparks controversy with call for ban on slashing animals' throats in 'ritual' slaughters for halal and kosher meat products
Ukraine crisis: Russia dismisses '3am ultimatum' as 'total nonsense'
If you're horrified by a flame-roasted dog, you should be shocked at a hog roast
- 1 International Women's Day 2014: The shocking statistics that show why it is still so important
- 2 Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
- 3 Orgasm machine to deliver climax at the push of a button
- 4 Too upsetting? Academy members voted for Oscar-winning 12 Years A Slave 'without watching it'
- 5 Liam Neeson turned down James Bond role because Natasha Richardson said she wouldn't marry him if he took it
iJobs Money & Business
£12000 per annum: Inspiring Interns: The company works with Tier 1 FTSE 100 Ba...
£32000 - £36000 per annum + generous benefits: Pro-Recruitment Group: * TAX * ...
£37000 - £40000 per annum + £20000 benefits package: Pro-Recruitment Group: **...
£30000 - £35000 per annum + generous benefits: Pro-Recruitment Group: Mixed Ta...