The Board of Directors of Simonds Farsons Cisk plc are pleased to announce record results for the financial year ending 31st January 2008. Group Turnover increased from €62,244,000 to €66,109,000 an increase of 6.2% whilst Group profit before Tax increased from €2,124,000 to €4,002,000, an impressive 88% increase.
The main reason for these results is that the Group has benefited from a better tourist year and economic climate. Improvements were reported across the Group but the food import business, Quintano Foods Ltd and its food franchise retail business, Food Chain Ltd performed particularly well. The Group also made a substantial profit of €1,102,000 on the sale of land no longer required for its operations.
Towards the end of the financial year Farsons inaugurated a new €24 million investment in a new soft drink packaging hall and logistics centre. These important projects have signified a substantial restructuring of its operations including the centralisation of its distribution system. The full benefit of these changes will take time to take effect.
The Board of Directors has approved a revaluation of its land and buildings, which is being reflected in the Consolidated Balance Sheet. The revaluation amounts to €55.5 million and is based on the independent valuations by two architectural firms commissioned by the Directors. The net surplus after providing for deferred taxation of €11.1 million, amounts to €44.4 million and has been credited to reserves and so is part of Shareholders equity.
Commenting on these results CEO Louis Farrugia stated that ‘whilst these results are the best ever, we still require to make further investments in plant and machinery so that we can improve our productivity and quality levels, and we must continue to challenge the way we operate in order to ensure that the Group reaches its full potential, this within a growingly competitive environment following full liberalisation of the market. I am however particularly pleased with the turnaround of our fast food business, and the encouraging orders that Farsons is now receiving from export markets. I remain confident that the Farsons Group will continue to be entrepreneurial and invest in the opportunities that may arise in the increasing number of markets that we sell in.’