Napier Brown marks flotation anniversary with payout
Napier Brown Foods marked its first year after flotation on the
alternative investment market (Aim) with profit before tax of £2.1
million (€3.04m) for the half year.
The company that supplies to industrial, retail and catering sectors of the food industry said it was 'very pleased' with the company's maiden results that were in line with expectations.
Since floating last December the sugar merchant signed on five acquisitions, marking a drive into value-added sugar and bakery ingredients.
In a deal worth £17.5 million (€26.2m) Napier Brown bought glucose supplier James Budgett Sugars in July this year. At the time the supplier of Whitworth brand of sugar said the purchase would strengthen its position in light of imminent changes to the European sugar regime.
"The acquisition cements an important trading link with ED&F Man, one of the world's largest sugar traders," said Patrick Ridgwell, chairman of Napier Brown.
Reform of Europe's heavily subsidised 35-year-old sugar regime, and which trades sugar at three times the world market price, is expected in 2006. The EU currently gives €1.3 billion in subsidies to its sugar producers.
Shortly afterwards in September the company paid £18.5 million (€26.8m) for the bakery ingredients division of UK firm Renshaw Scott to build up its position in the cake covering market.
Under the terms of the deal, Renshaw Scott's icings and marzipan production sites in Liverpool and Carluke, Scotland, as well as all 175 employees were included.
Shaving away at resources to up manufacturing efficiences the Napier Brown chairman confirmed yesterday that because the Liverpool operations 'are very similar' to those performed at its Runcorn production site, it will sell the majority of the Runcorn facility, leaving only nut production in a dedicated plant.
The other site at Carluke manufactures baking chocolate and retail jams and will stay as a standalone production unit.
"I am delighted to propose the payment of our maiden dividend of 1p per share," added Ridgwell on Tuesday.
The UK firm, that posted an operating profit for six months to September of some €5.6 million, said it counts food giants Kellogg and Cadbury Schweppes as well as UK retailers Tesco and Morrisons on its client list.
