Fyffes baffled by poor share price

Fyffes deputy chairman Mr Carl McCann had no explanation yesterday at the group's annual meeting for the poor performance of the share price relative to its peer group. Mr McCann told the a.g.m. that, while Fyffes' share price had risen 65 per cent in the past year, Del Monte was up 178 per cent, Chiquita 136 per cent and Dole 120 per cent.

"Everybody had been marked down but there has been a recovery. I don't know why our shares are at such a discount. All we can do is put our figures forward and investors can decide for themselves. We have met a lot of American and British institutions and their reaction to the difference is amazing," said Mr McCann. He added that there were signs of funds moving from US institutions into mid-cap European stocks.

Mr McCann said Fyffes had no current plans for a listing on the US markets. "Unless we have a big American business, it's not appropriate. It would be hard to justify it."

Mr McCann said Fyffes had no current plans to use its €150 million cash pile to buy back shares. Management's preferred option is an acquisition, preferably in Europe where a deal would offer synergies. "We're looking hard for an acquisition but the courtship is long," he said. On the euro/dollar exchange rate, a key variable for a firm such as Fyffes which sources much of its produce in dollars, Mr McCann said the group would like to see the euro appreciate by about 10 cents.