Food group’s fall in profits

THE Batchelors food company, which was bought by the Barry family and Bank of Scotland just over a year ago, recorded a fall in profits just in its last financial year.

According to recently filed accounts for Maiden Foods, the holding company for Batchelors foods, the company’s pre-tax profit for the year to April 30, 2004 was €4.2 million. This is down from €7.8m the previous year. The company blamed the fall on a €2.8m write-off in the value of a computer system.

Batchelors was bought by the Barry family, which own the eponymous tea business, and Bank of Scotland’s ICC venture capital arm in December 2003 for close to €93m from Northern Foods.

Profits were also hit from an increase in distribution cost from €8.3m to €9.1m and a rise in admin expenses from €4.7m to €5.3m.

Turnover for the period slipped from €76.3m to €76.1m. A breakdown of turnover shows its biscuit brands booked a rise of €309,000 in sales to €10.4m, though sales at the Batchelors and Lustre canned food brands fell to €63.5 from €64.4m.

During the year the number of people employed fell by six to 283, reducing the company’s wages bill for the year to €8.43m. Directors’ pay for the year dropped from €827,000 to €777,000.

Maiden owns a number of food brands such as Batchelors, Squeez, Amigo, Picnic and Lustre. In addition, products are distributed on behalf of other manufacturers under the brands of Green Giant, Old El Paso and Fox’s Biscuits.

“The group intends to expand by extending the range of its manufactured products through the introduction of new products and the distribution of additional bought-in foods,” the directors said.