Farsons pre-tax profits up 88 per cent

Simonds Farsons Cisk plc has announced record results for the financial year ending January 31, 2008. Group turnover increased from €62.2 million to €66.1 million, an increase of 6.2 per cent while group profit before tax increased from €2.1 million to €4 million an 88 per cent increase.

The group has benefited from 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. The group also made a substantial profit of €1.1 million 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. These important projects have signified a substantial restructuring of its operations, including the centralisation of its distribution system. The full benefit of these changes will take time to be felt.

The board has 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.

"While these results are the best ever, we still need to make further investments in plant and machinery so that we can improve our productivity and quality levels," CEO Louis Farrugia said.

"We must continue to challenge the way we operate to ensure that the group reaches its full potential, this within a growingly competitive environment following full liberalisation of the market. I am particularly pleased with the turnaround of our fast food business, and the encouraging orders that Farsons is now receiving from export markets."