IAWS 'happy' with performance ahead of key months for firm

IAWS has said it is "happy" with its trading performance over the first five months of its financial year.

Speaking to shareholders at the food group's annual meeting yesterday, chairman Denis Lucey said it was too early to make predictions about the current year, especially as more than 60 per cent of the group's operating profit is made in the second half of its financial year.

However, he noted that "the board and the directors are happy with the trading performance of those first five months".

Chief executive Owen Killian also said it was too early to forecast the performance of the agri/nutrition business, which had a disappointing time last year when it experienced a drop in sales and operating profits.

February, March and April were the key months for that business, particularly its fertiliser division, Mr Killian said, noting: "You could do more in a good week in April than in all of January."

However, 80 per cent of the group's profit now derives from its food business, which remains a strong performer, delivering organic growth of 10 per cent in the year ended last July.

Mr Killian said the company, which made its largest acquisition ever when it bought the French-based Groupe Hubert in December 2004, remained focused on organic growth, but would pursue acquisitions where it could find them.

He refused to be drawn on whether the company intended to further increase its 32 per cent stake in the Swiss bakery group, Hiestand, saying it had "no plans" in relation to this.

Asked why the company had recently changed auditors, switching from Ernst & Young to KPMG, Mr Lucey said it was to comply with best corporate governance practice.

At the request of a shareholder, the company also agreed to consider the introduction of a dividend reinvestment scheme.

A number of non-executive directors, including the chairman of Davy Stockbrokers, Brian Davy, and the company's former finance director, David Martin, both of whom have served more than nine years on the board of the company, were reappointed at the meeting.

But former IAWS chairman Jim Moloney, who has been with the company from its early days, retired from the board at yesterday's meeting.

Shares in IAWS closed four cent, or 0.3 per cent lower, yesterday at €13.46.