Group enjoys 79% rise in operating profits
Linden Foods is a wholly-owned subsidiary of Fane Valley Co-op. In addition to its business based in Dungannon, Linden Foods also holds a 50% interest in a joint venture trading mainly south of the border: Slaney Foods. The company also has an investment in W&K Holdings, an English-registered company.
The results for Linden Foods contain details of the addition to turnover and profits attributed to the joint ventures. The turnover and operating profits from the joint ventures account for over one third of the group turnover and operating profits.
The principal activities of the group are described as the slaughter of cattle and sheep and the processing and supply of meat (and its by-products) to retailers, wholesalers and other processors.
In the last decade, turnover has nearly trebled. Operating profits in 2012 reached £4.7m, which was 79% higher than a year earlier. Net interest charges on borrowed funds reduced the pre-tax profits by £0.6m. Pre-tax profits at £4.3m were much improved on the preceding years.
During 2010 and 2011, the group invested nearly £9m in capital expenditure on a new purpose-built facility. In 2012, capital investment at just under £1m was lower than in the preceding years.
Employment has increased steadily each year to an average of 738 people in 2012. More recently, in association with a £5m investment, the group has said that a further 179 new jobs will be created.
Shareholders' funds, as reflected in the balance sheet, are valued at £27m. Since there has not been any dividend paid to the parent company, as shareholder, the post-tax profits have been retained and added to shareholders' funds.