IAWS Co-op sees profits up by 166%

THE sale of property and shares helped hike up profits at the IAWS Co-op by 166% last year.

Accounts for the company show pre-tax profits for the 16 months to the end of last December were €65.5 million, compared with €24.9m in the year to end August 2003.

The company, in the final stages of acquiring the Bandon-based SWS Group, said the sale of a large chunk of its remaining stake in IAWS plc and the Bolands Mill property on Dublin’s Barrow Street boosted profits.

Turnover for the period was €86m compared with €76m for the year to end August 2003, according to the accounts which have just filed at the Companies Registration Office.

Chairman Denis Buckley said in the accounts: “The financial performance for the 16-month period was very satisfactory, delivering profits before tax of €65.4m compared to €24.9m for the year to 31 August 2003.

“The increase in profitability for the period results form a very satisfactory performance from the society’s subsidiaries, joint venture and associates coupled with a significant increase in exceptional gains due to the sale of Barrow Street and the placing of IAWS Group plc shares.”

The co-op’s main assets are Irish Pride Bakeries, rendering company Premier Proteins, and a 50% stake in Greenore Port.

IAWS also holds a 45% stake in French fertiliser firm Cedest Engrais, and one third of the shares in the Malting Company of Ireland.

The accounts did not give a specific breakdown of sales in each of the trading companies.

However, it said turnover at the rendering business was €15.5m, with the remainder coming from the bakery business.

The sale of property in Dublin saw a profit of nearly €18m, with shares sales adding a further €53m.

However, a €10m restructuring pulled back the overall exceptional gains to €61m.

The society paid out €605,000 in dividends to its members, up from €461,000 in 2003.

The co-op’s members can expect further windfalls after a decision to distribute the remaining shares of IAWS plc to them. The 11m IAWS plc shares are worth more than €130m.

The salaries and fees of the co-op’s management and directors were not disclosed.

Shareholders’ funds at the end of last year stood at €308m.

The co-op, which is headed by Phil Lynch (the former boss of IAWS plc), has launched a raid on shares in the utilities group National Toll Roads.

It has built up a 26% stake in NTR, though it is not expected to launch a full bid for the company.

Members of the co-op recently voted to change its name to One51 - after the building in Dublin where the company was formed in 1897.

The co-op is close to finalising the protracted takeover of the windfarm and waste assets of South Western Services.

When the takeover is completed, the enlarged group is expected to float on the Irish stock market next year.