Farsons' profitability expected to improve for this year

After a difficult 2008, Farsons' profitability is expected to improve as a result of remedial measures to boost efficiency and competitiveness, Group CEO Louis Farrugia has said.

He was addressing shareholders at the 62nd annual general meeting of Simonds Farsons Cisk plc.

Mr Farrugia also referred to the construction of a new €12.5 million brewhouse as the final phase of the company's master plan to renew its total plant and machinery.

He informed shareholders that planning design work and project management preparation were underway and a planning application would be submitted shortly. Permission would also be sought to build a further floor and offices on top of the new logistics office block. The decision on whether to start the project will be taken later this year.

"Trading conditions remain challenging. Group turnover has reduced marginally as compared to the same period last year, but the various measures of cost containment taken by management have made up for the shortfalls in revenues, and to date, targeted results are close to being attained. Subject to the performance of the early summer month sales, we remain optimistic that the operational profit for the six months to July 31, 2009, will be better than that reported for the same period last year," Mr Farrugia said. Company chairman Bryan Gera told the shareholders that the group's turnover reached €66.4 million. Group profit before tax amounted to €895,000.

"Our EBITDA (earnings before interest, tax, depreciation and amortisation) remains strong," said Mr Gera.

The AGM approved the board's recommendation of a total dividend of €1 million. Shareholders also endorsed the board's proposal regarding the allotment of one bonus share for every six shares held.