Tag: Christian Salvesen

Financial Highlights
– Revenue up 10% to £899m (2006: £819m)
– Underlying operating profit before exceptionals decreased to £18.1m (2006: £20.7m)
– Underlying profit before tax and exceptionals down to £12.5m (2006: £15.4m)
– Earnings per share of 17.90p (2006: 4.46p)
– Strong free cash flow of £61m, reflecting the £46m from the property sale & leaseback
– Significant reduction in net debt to £39m (2006: £94m)
– Final dividend unchanged at 2.45p
Operational Highlights
– Sales growth momentum continues
– New business wins ahead of last year at £130m
– Food and Consumer sector performed strongly
– UK businesses had an excellent year
– Transport sector had a difficult year
– Review of UK Transport complete and turnaround actions underway
– France continued strong revenue growth with new wins
– Strengthened management team
Stewart Oades, Chief Executive, said:
“Whilst the continued improvement in growing the business through new wins and increased retention rates is pleasing, there remains much to be done. The markets we operate in are still highly competitive and the performance of UK Transport is not acceptable. We have completed a thorough review of this business unit and have put in place a plan to move this business back into profit. Although this will take time, UK Transport is an essential part of our strategy to create a pan-European shared-user business.
“In the current year we expect revenue growth to continue and anticipate some benefit from the restructuring, although it will take longer before we see the full impact.”

Christian Salvesen announced that it has signed a definitive agreement for the sale of its frozen vegetable business, Christian Salvesen Foods (“the business”), comprising stock, plant, machinery, people and contracts to Pinguin Foods UK Limited, a subsidiary of Pinguin NV (“Pinguin”) for estimated total cash consideration payable at completion of GBP 17.2m. The consideration is subject to adjustment for the actual amount of stock at the date of closing. In addition, Christian Salvesen will continue to provide storage and distribution services to the business on normal commercial terms for a minimum term of sixteen months. The transaction is expected to close in mid-September following employee consultation.

The business consists of vegetable processing, packing and storage activities at three sites in Lincolnshire, located in Bourne, North Thoresby and Easton. In the year ended 31st March 2007 the business reported revenues of GBP 44.6m and operating profit of £0.7m; operating profit included exceptional net income of GBP 0.4m and an allocation of £0.8m of Group overheads. The gross assets of the business were GBP 29.5m at 31st March 2007.

The impact of the transaction on earnings is expected to be broadly neutral. The proceeds will be used for general working capital purposes.

As part of the transaction structure, Christian Salvesen will retain responsibility for the debtors and creditors at the date of closing. The land and buildings at the three sites will be retained by Christian Salvesen, with rent-free leases granted for 6 years to Pinguin. In addition, Pinguin has been granted an option to buy a 999 year lease of the Bourne site for GBP 4m within two years.

The Christian Salvesen sites at Grimsby, Hull and Lowestoft, which provide contract processing and storage services and are reported as part of the UK Logistics business, are not included in this transaction and will remain with Christian Salvesen.

Christian Salvesen PLC (“Christian Salvesen”) announces that, at a hearing today in the Court of Session, the Court granted an order confirming the reduction of the share capital of Christian Salvesen as part of the scheme of arrangement under section 425 of the Companies Act 1985 to effect the recommended acquisition by Groupe Norbert Dentressangle S.A. of the entire issued and to be issued ordinary share capital of Christian Salvesen (the “Scheme”) on the terms set out in a circular despatched by Christian Salvesen to its shareholders on 15 October 2007. A copy of the Court order has been delivered to and registered by the Registrar of Companies. The Scheme accordingly became effective today.

Christian Salvesen will apply to the United Kingdom Listing Authority for the cancellation of the listing of its ordinary shares on the Official List and to the London Stock Exchange for the cancellation of the admission of its ordinary shares to trading on the London Stock Exchange’s market for listed securities, in each case with effect from 8.00 am on 17 December 2007.