Profits at C&D Foods rise to €6.3m despite 2006 fire

C&D Foods, the Longford-based petfood group, made a pretax profit of €6.3 million in 2006, despite suffering a severe downturn in turnover as a result of a serious fire in January of that year.

The profit figure equates to an increase of more than 250 per cent on the 2005 pretax profit figure of €2.45 million.

Turnover in 2006 dropped to €60 million from €92 million the previous year. The Longford operation was out of business for eight weeks following the fire.

Recently-filed accounts show the group received substantial insurance payments during the year because of damage to plant and buildings caused by the fire, and because of the resulting loss of business. The accounts do not give the value of the insurance compensation received, though they indicate it was in excess of €23.2 million. This figure does not include the cost of funding the 240 redundancies that arose as a result of the fire.

The group's cashflow statement includes a "disposal" of fixed assets of €15.5 million during the year, reflecting the loss resulting from the fire, which severely damaged the group's cannery facility.

The consolidated profit and loss account shows an exceptional item of €3.39 million arising from business interruption insurance compensation, less related redundancy and other costs.

Pretax profits include a further amount of €4.29 million in respect of fire insurance compensation that was in excess of the book value of the plant and buildings destroyed.

The group produces and distributes petfood mainly under private label contracts for the major multiples. Notes to the accounts state that the group's cannery production remains out of operation and that some products have been outsourced to service part of this business. The remaining divisions experienced profit growth during the year.

The Longford operation now employs 235 people. At the time of the fire the number employed was approximately 480. During 2006 the average number employed by the group was 333, down from 534 in 2005.

Payments to directors during the year were €586,913, up from €435,208 the previous year. There were five directors during the year.

The group is owned by Philip Reynolds, son of the founder, former taoiseach Albert Reynolds.

Notes to the accounts state that during 2006 Philip Reynolds provided technology and services to the group to the value of €644,717, down from €1.3 million the previous year. Mr Reynolds also rented premises to the group at a cost of €360,000 during the year, and purchased an asset from the group for €280,000.