April 7, 2006

British meat processor reports 89 percent drop in profits

One of the largest British meat processors, Grampian Country Food Group, saw pre-tax profits plunging by 89 percent in 2005, largely due to factory closures.

Pre-tax profits at privately-owned Grampian fell to GBP1.3 million (US$2.3 million) to the end of May last year compared to GBP12 million (US$21 million) in 2004 despite turnover increasing by GBP138.1 million (US$ 241 million) to GBP1.851 billion(3.2 billion).

Operating profits increased nearly 50 percent, adding GBP15.1 million (US$26.4 million) of profits to a total of GBP43.6 (US$76.3 million).

Much of the damage to Grampian's bottom-line was caused by a GBP19.3 million (US$33.3 million) hit brought about by the closure of four factories that included the loss of 1,000 jobs.

Following the announcement, executive chairman Fred Duncan issued warnings that further restructuring would be carried out.