By all accounts, Neil McCann was beaming with satisfaction at the announcement of the 1997 results - not just at the 15 per cent rise in profits to £62.1 million (#78.9 million) - but also at the deal announced just before Christmas which gives Fyffes a 10 per cent stake in South African fruit group, Capespan, and a 50 per cent stake in Capespan's European distribution business.

The deal with Capespan is complex, but taking the 10 per cent equity stake in the Capespan parent in South Africa has cost Fyffes £12.2 million, valuing the South African group at £122 million (#155 million).

This compares with Fyffes' own stock market value of #700 million and is a solid indication why Neil McCann sees a full merger with Capespan as a good deal.

But it is unlikely Fyffes will take control of Capespan for a number of years - the Irish group has a history of initially buying 50 per cent stakes in companies, leaving the management in place to build the business and eventually taking full control.

That same strategy is likely to be followed with Capespan, with the European business - in which Fyffes has 50 per cent - being built up over the next few years.

The Capespan deal has added two new household name brands - Cape and Outspan - has extended Fyffes' fruit season and has increased its market share in Europe from 5 per cent to 7 per cent.

In the short term Fyffes is expected to devote £93 million of its cash pile to make more acquisitions in Europe.