Financial performance update for the six months ended 30 September 2015
First Milk has confirmed that its turnaround plan is delivering tangible results, with its financial performance in the six months ended 30 September 2015 showing significant improvement over the previous year.
Operating profit for the first six months of the year was £1.1m compared to a loss of (£7.6)m for the same period last year - an improvement of £8.7m. It is anticipated that the results for the second six months to March 2016 will also show a positive operating profit - compared to an operating loss of £(12.3)m in second half last year. As a result for the current financial year as a whole, the business will also make an operating profit.
Debt has continued to reduce, and at the end of September 2015 was £46.1m, compared to £60.7m as at March 2015.
First Milk CEO Mike Gallacher commented,
"The actions taken to reduce costs, improve quality, and drive operational performance are delivering results, with further progress planned over the next year. We are confident that this will deliver improved milk prices and a more sustainable business model for our farmer shareholders.
"My team and I are very aware of how tough it is at present on farm and the need to sustain this improvement trajectory to deliver benefits to our members."