Like the Skibereen Eagle , which famously had its eye on the Kremlin, minority shareholders locked into tea and coffee distributor Lyons Irish Holdings are equally vigilant in monitoring the growing cash hoard of the company. Lyons', whose black-and-white minstrels now surrealistically tap dance to an ersatz Riverdance beat, is still sitting tight on £54.5 million in cash, represents 93 per cent of net assets. This a bone of contention for those independent shareholders who question whether the loot can be more productively employed that the current 5 per cent.
Control of Lyons is now firmly in the hands of Uniliver Ireland, which has 80. 6 per cent of the equity, the disaffected rump denying the multinational full control. Lyons' chairman Pierce Butler argues that the money is "earning its keep " but the board continue to vacillate over what might constitute an earnings enhancing investment. There may be some definite proposals to put to the next annual general meeting.
Annual results this week confirm that Dunkin' Donuts into the Lyons teacup was a messy business, with pre-tax profits trimmed by £500,000 due to a provision for anticipated losses incurred by the closure of the donut business. Nonetheless the board says Lyons had a "reasonably good year" and, stripping out the once-off provision, there was modest growth in core profits.
Shareholders, primarily Uniliver, will get their spoonful of sugar with total dividends rising 14 per cent to 14,6 p a share. The a.g.m is often a lively affair, as some minstrels stubbornly continue to dance out of step.
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