Farsons Group reports record profit

Farsons said today it made a pre-tax profit of €4,002,000 in the last financial year, up by an impressive 88% over the previous year's result of €2,124,000.

Group turnover increased from €62,244,000 to €66,109,000, an increase of 6.2%.

The group said it had benefited from a better tourist year and an improved economic climate.

Improvement was reported across the group, with the food import business, Quintano Foods Ltd and its food franchise retail business, Food Chain Ltd performed particularly well.

The group also made a profit of €1,102,000 on the sale of land no longer required for its operations.

"Whilst these results are the best ever, we still require to make further investment in plant and machinery so that we can improve our productivity and quality levels, and we must continue to challenge the way we operate in order to ensure that the group reaches its full potential within an increasingly competitive environment ," Group CEO Louis Farrugia said.

"I am however particularly pleased with the turnaround of our fast food business, and the encouraging orders that Farsons is now receiving from export markets. I remain confident that the Farsons Group will continue to be entrepreneurial and invest in the opportunities that may arise in the increasing number of markets that we sell in.'

Towards the end of the financial year Farsons inaugurated a new €24 million investment in a new soft drink packaging hall and logistics centre, crowning a substantial restructuring of its operations including the centralisation of its distribution system.

The group said the board of directors had approved a revaluation of its land and buildings, which is being reflected in the consolidated balance sheet. The revaluation amounts to €55.5 million and is based on the independent valuations by two architectural firms commissioned by the directors. The net surplus after providing for deferred taxation of €11.1 million, amounts to €44.4 million and has been credited to reserves and so is part of shareholders' equity.