Pre-tax profits at Total Produce fall 10%

FRUIT distributor Total Produce, which was spun out from Fyffes some time ago, has seen its profits before tax fall 10% in 2008 to e29.8 million, from the e33.2m reported in 2007.

Due to the hostile global environment, the group is cautious about prospects for the current year, but chairman Carl McCann is confident about the 2009 outlook.

In 2008, closure costs relating to the decommissioning of a plant in Ireland and a number of stores in Britain were the main reason for the profit reversal, the group said.

Those actions resulted in the imposition of an exceptional charge of e4.6m which fed through to the bottom line in the year under review.

Results in the current year could be hit by international currency movements against the euro which would undermine earnings in the current period, Mr McCann said.

Total Produce shares rose 3 cents, or 16%, to 22 cents in Dublin trading, its biggest gain since October 3. The rise gives the company a market value of e77m.

In the year under review revenues rose by 3.5% to e2.5bn, due mainly to contributions from the acquisitions of Haluco and Nedalpac in the Netherlands and bolt-on acquisitions made during the second half of 2007 and in 2008.

Shareholders will be paid a final dividend of 1.15 cents per share, subject to shareholder approval at its forthcoming annual general meeting.

Total dividends for 2008 will amount to 1.69 cents per share, up 2.4% on the 2007 dividend.

The company said it will continue to pursue further expansion plans to develop the group’s prospects in the years ahead.

Bloxham Stockbrokers, in a recent review of the listed Irish food groups, tipped Total as one of the better investments on the market, offering the prospect of long-term security and dividend payments down the line.