First Milk has delivered solid financial results for the year to 31 March 2011.
The key financials are:
· Despite challenging economic conditions, a positive swing in profitability was achieved. This resulted in a pre-tax profits of £7.2m (2010: £360k)
· The milk prices paid to producers increased significantly in the year. The standard litre liquid pool price increased by 3.35ppl and our cheese pool price increased by 3.15ppl during the year. So far a further 1.4ppl has been put on the liquid price and 1.98ppl on the cheese price in 2011/12.
· The business is committed to rewarding farmers for capital they have invested in the business and is paying a 6% return on members' capital in 2011 (£2m)
· Group turnover was £573m (2010: £536m), an increase of 7% on 2009/10.
· First Milk has substantially lower net bank debt than last year at only £44m (2010: £69m) mainly as a result of stronger operating cashflow and lower stocks.
· The company has a robust balance sheet, with total net assets of £51m at 31 March 2011 (2010: £46m).
Chairman Bill Mustoe commented:
"The business made substantial progress in 2010/11. Financially, we are strong with improved profitability, a more competitive milk price, a sound balance sheet and lower net bank debt.
"2011/12 has started well and we have been able to make further milk price moves and another return on members' investment. Additionally in May, we announced the acquisition of Kingdom Dairy and Kingdom Cheese which greatly broadens our product, customer and market mix.
"Thanks to the efforts of our farmers, our employees and our partners, the business is moving forward on all fronts. This progress has opened up opportunities and presents us with a variety of paths to grow turnover and profits. We will select our route carefully with a clear focus on building sustainable returns for our producers."
18 July 2011
Contact for media enquiries:
Paul Flanagan on 07767 241452