Musgrave Group worth at least €447m

MUSGRAVE Group, which paid a dividend of €12.17 million to shareholders last year, is worth at least €447 million, accounts filed with the Companies Registration Office indicate.

Musgrave, the parent company of SuperValu-Centra, Budgens in Britain and Dialsur in Spain, had a turnover of €3.34 billion in the year to December 31, 2003 compared to €2.78bn in 2002, a 20.4% increase.

The accounts show that a dividend of €12.17m is to be paid to members of the extended Musgrave family, who have an estimated 75% holding in the company, and management and staff, who hold the remaining 25% stake.

The bulk of the Musgrave family holdings are held by company chairman Hugh Mackeown, with close to €11.5% of the company, Peter Musgrave with an estimated 14.4% and Stuart Musgrave with a holding in the region of 4.7%.

The company's 13 directors shared a €3.66m (2002, €3.1m) in remuneration, an average of €281,000. This was exclusive of premium pension contributions, according to the filed accounts. The documents show that on December 11, 3003 at an extraordinary general meeting, the company approved the redemption of shares held by the former ICC Bank, now owned by Bank of Scotland, Ireland, for €21.89m. It is understood, this holding was close to 4.9% of the company, which indicates the directors placed a value of close to €447m on the company at the beginning of the year. The payment to Bank of Scotland came from distributable reserves.

In a takeover situation, Musgrave Group plc, which made pre-tax profits of €59.3m in 2003 (2002 €57.6m) would be expected to make far more than €447m.

The accounts show the company paid €10.86m in corporation tax in 2003 to the Exchequer at 12.5%, compared to €11.06m in 2002 at 16%. Musgrave paid €4.36m (€3.72m) in overseas corporation tax (30%-35%) in 2003.

The accounts also indicate that Musgrave is committed to continued expansion with contracted capital expenditure in the pipeline worth €32.3m, and a further uncontracted approved spend of €38.9m on capital projects.

Musgrave's group net debt was reduced from €472.4 million to €394.1 million in 2003, while shareholders' funds increased to €229.3 million

During the year 1,690 employees were awarded a record €1m worth of free shares.

Musgrave 2003

Turnover: €3.34 billion.

Net profits: €42.9m.

Dividend of: €12.17m.

Net debt: €394.1m.