Express Dairies: results for half year

LONDON (AFX) Express Dairies PLC restored its dividend payment after a
restructuring exercise that boosted profits and cut debts in the first half.
However, further job losses have “inevitably” arisen as a result of the
restructuring, with the number of its employees falling to 5,217 at
end-September from 5,862 at end-March and 6,976 in September 2001.
In the half-year ending September, the group saw its underlying profit
before tax, exceptional items and goodwill amortisation rising to 14 mln stg
from 13.4 mln last time.
Its net debt at 30 September has fallen by 74.2 mln stg to 121.2 mln stg
following the disposal of non-core businesses.
The group has resumed dividend payments as a result, with an interim pay-out
of 0.4 pence a share.
“The business has made progress in what remains a challenging market
environment. Debt has been substantially reduced, underlying profits and
earnings increased, and the restructuring of our operations and management is
nearing completion,” Sir David Naish, the group’s chairman, said.
“These positive developments are reflected in our decision to pay a
dividend,” he said.
Adjusted earnings per share increased to 3.2 pence from a restated 2.9 pence
a year earlier.
The company said it maintained its market share in the supply of milk to
supermarkets, “though returns in this sector continue to reflect industry
overcapacity, which will ultimately be addressed only through consolidation and
rationalisation.”
In the home delivery sector, it claimed to have further reduced costs while
developing its plans to maximise the potential of its network after obtaining
Postcomm licence.
Losses in Scotland have been reduced following the restructuring, it added.
The group said it is on track to achieve targeted cost savings of some 9
mln stg in the current year.
It expects capital spending to reach 20 mln stg for the current year.
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