Arrow Group profits plunge 70%

PRE-tax profits at the Queally brothers’ food processing business Arrow Group have fallen by almost 70% from €14.9 million to €4.7m.

However, turnover at the Waterford-based company in the 12 months to the end of December 2008 increased by 5% to €416.5m from €396.8m a year earlier. No dividend was paid and the company transferred all post-tax profits of €3.16m to reserves.

The company’s cashflow fell dramatically, down from €27.2m in 2007 to €10.01m in 2008, according to accounts filed with the Companies Registration Office.

The company increased its investment in fixed assets from €26m in 2007 to €32.9m in 2008. There was an increase in net bank borrowings of €32.7m (2007: €11.3m) to €133.9m from €102m. The company had €12.5m in cash at the bank, up from €7.8m in 2007.

It has trade debtors of €71.5m (2007:€67.5m). Trade debtor invoices of €24m (2007: €18.2m) have been assigned to third parties under invoicing discounting arrangements.

The cost of closing a subsidiary, Dawn Fresh Foods in 2008, resulted in costs of €726,161.

Employee numbers fell from 1,878 in 2007 to 1,784, while staff costs rose to €65.1m from €63.2m in 2007. Directors’ pay including pensions came to €198,882 in 2008, up from €191,461 in 2007.

The company’s subsidiaries include Queally Pig Slaughtering Limited, Dawn Farm Foods, Dawn Fresh Foods, Tabard Irish Dog Foods, Dawn Farms Distribution, QK Cold Stores, Arrow Finance, Cheekvale, Glenpatrick Springwater, Hazelmark Developments and Techniform Engineering.