Farsons Group pre-tax profit up 88 per cent

Simonds Farsons Cisk plc yesterday announced an 88 per cent increase in the Group's pre-tax profits, up from €2,124,000 to €4,002,000 for the year ending January 31, 2008.

Group turnover rose from €62,244,000 to €66,109,000, an increase of 6.2 per cent.

The Group attributed the improved results to "a better tourist year and economic climate". Improvements were reported across the Group but the food import business, Quintano Foods Ltd and its food franchise retail business, Food Chain Ltd, performed particularly well, it said.

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

Towards the end of the financial year, Farsons inaugurated a new €24 million soft drink packaging hall and logistics centre.

The Group said that its board of directors has approved a revaluation of its land and buildings, which is 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.

While acknowledging that the results were the best ever, CEO Louis Farrugia said that the Group still had to make further investments in plant and machinery in order to improve productivity and quality levels. "We must also continue to challenge the way we operate in order to ensure that the Group reaches its full potential, this within a growingly-competitive environment following full liberalisation of the market. 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," Mr Farrugia said.