Enodis eases American trading fears

Catering equipment maker Enodis restored its annual dividend today and dispelled fears that trading in its largest market had taken a turn for the worse.

The supplier of ovens to restaurants such as Burger King and McDonald’s rewarded shareholders for a 10% hike in profits during the year to October 1 by unveiling a dividend of 1.3p – its first such payment since 2001.

Underlying pre-tax profits of £45.4m (€66.5m) were achieved despite sudden rises in energy bills and prices of raw materials such as steel.

Enodis said further increases in costs over the next 12 months should be offset by charging customers in North America more for ovens, drinks dispensers and other products made by its Food Service Equipment division.

But tougher market conditions limited its scope to take similar action in Europe and Asia, while cost pressures would continue to squeeze its Food Retail Equipment division selling fridge units to supermarkets and convenience stores across the Atlantic.

Chief executive Dave McCulloch said the London-based company would benefit further from a cost-cutting drive over the past 12 months and he looked forward with confidence to “another year of good progress”.

He added: “Although there has been some media commentary regarding the potential for reduced short term consumer confidence, GDP growth and order intake remain strong in North America.”

The growth of food and drinks markets across the globe were forecast to continue to mirror historic rates of approximately 4%, Mr McCulloch said.