Donegal Creameries turnover increases – bank debt reduced

Donegal Creameries PLC has released its preliminary financial results for last year with the Board viewing the company's performance in 2012 as satisfactory.

This is the first full reporting year following the strategic disposal of its liquid milk and agri-stores business to Connacht Gold.

The company says it delivered a year of consolidation around a more focused and streamlined Group with its seed potato business at its core - in that regard there was further progress made in 2012 in developing new markets and new varieties.

Overall, there was a Revenue growth of 16.9% but adverse weather conditions resulted in a significant impact on Produce business which despite growth in turnover of 5.2% saw profits reduced from €3.4m in 2011 to €0.94m in 2012.

In contrast the conpanies animal-feeds business benefitted strongly from increased demand for quality animal feeds during the winter months.

There was a strong contribution of €4.5m from key associate investments including Monaghan Middlebrook Mushrooms.

Total bank debt reduced from €32.9m to €21.7m, further reduced by post year-end receipt of €2.5m in contingent earn-out payments from the disposal of the Group’s liquid milk and agri-stores business to Connacht Gold.

The group says that it will continue to review options to release capital from its non-strategic businesses and assets with the objective of focusing financial and management resources on the strategic areas of seed potato, value added dairy and associate investments.

Dividend per share maintained at 16c while Net asset value per share was up 66c to €5.75.