Food and agri-nutrition deliver goods for Origin

ORIGIN ENTERPRISES said strong demand across its food and agri-nutrition divisions delivered a good first year for the group.

Since its spin-off from the convenience food operator, IAWS Plc, the group has reported significant progress across its operating divisions, which it aims to grow organically and through acquisitions.

Progress has also been achieved on its critical 32-acre Cork Dockland site close to the city centre and it is close to seeking planning permission for its two-acre site which the group described as the “key gateway site to the South Docks”.

In all, Origin owns 32 acres along the Cork waterfront which consists of about 121 acres in all.

It owns a further 55 acres in Newhall, Co Kildare, and 11 acres for development at Kilcock. Its land bank is valued at €165m in the group’s balance sheet.

The group has a special development team charged with overseeing all of its land development sites.

In the year to July 31, 2007, Origin reported sales rose 8.9% to €889m with group operating profits up 10% at €38.1m.

At the pre-tax level, however, profits were pretty flat, while shares in the group were unchanged at €3.80 in early afternoon trading, having fallen 5 cent earlier as the ISEQ tumbled nearly 3% in another bad day for the Irish shares.

No dividend is to be paid this year, but the situation will be reviewed next year, “bearing in mind the financial resources required for the development of the group”, the statement with the results said.

The group also raised €350m in syndicated loans to be used to expand its range of operations by organic growth and through acquisitions.

Origin expects to make at least one takeover in the current year.

In the period under review, the company bought Greencore’s 50% stake of Odlum’s for €35m and €20m of debt giving it total control of the business.

Last year agri-nutrition accounted for 77% of turnover with sales up 11% to €647.7m, boosted by increased demand for food leading to higher output of animal feeds and fertilisers in which the group is the lead supplier in both Ireland and Britain.

Its ambient food range represented by Shamrock Foods and its Roma range of sauces, pastas and rice, increased sales 9% year on year.

Continuing developments including new product lines will generate further growth in this area with a clear focus on the convenience, snacking and wellness categories, said chief executive, Tom O’Mahony.