Business still booming for meat baron

Background: Mr Goodman's meat processing and exporting group, Irish Food Processors Ltd, made pre-tax profits of €41.5 million in the year to March 31st, 2002, the latest year for which results are available. The group is wholly owned by Mr Goodman.

Mr Goodman's former meat processing group, Food Industries, collapsed in 1990 owing more than €365 million to the banks. Mr Goodman spent the next 10 years working on winning back control of his former business, which now operates under the Irish Food Processors banner.

The collapse of Food Industries came about, in part at least, because of the voiding by Mr Dessie O'Malley of State insurance cover the group had for exports to Iraq. Mr O'Malley was at the time the minister for enterprise, trade and employment.

Goodman Holdings, referred to in the statement issued yesterday by the AIBP group, was part of Food Industries in the late 1980s. It was the company to which letters of credit associated with the sale of beef to Iraq were issued.

In the late 1980s, Mr Goodman's companies were owed approximately €200 million for beef supplied to Iraq. In a finding made by the Master of the High Court, Mr Edward Honohan, in April last year, it was stated that €158 million of this was still due. He said that, of the beef at issue, €64 million worth had originated in Uruguay and Brazil.

Following the withdrawal of export insurance cover, Mr Goodman sued the State for just over €100 million plus costs and damages. During the preparations for the court action, which has now been settled, the State said it would be accusing Mr Goodman of fraud. He strongly refuted the charge.

In 1995, Mr Goodman, with a number of investors, set up Irish Food Processors as part of a restructuring process. He and the investors bought 65 per cent of the former Goodman business from the creditor banks who had taken it over at the time of the group's collapse. They paid €50 million. The banks forgave more than €380 million in debt.

Four years later, Mr Goodman bought out the other shareholders for a figure thought to have been around €83 million.

Since Mr Goodman won back control of the group, it has grown considerably. The €41.5 million profit made last year was an increase of €8 million on the previous year. However, turnover was €874 million, down from €914 million in the previous year.

A dividend of €24 million was paid out by the group last year and the remaining profits were added to the accumulated profits, which then stood at €145.6 million. On March 31st, 2002, the group had €144.4 million in the bank in cash.

The average number of employees during the year was 2,818, of which 1,500 were based in the Republic. Directors' emoluments were €1 million.

Mr Goodman's shares in the group are held by way of Parma Investments Ltd, of Lambs Passage, London. The company is described as dormant and has an issued share capital of £2 sterling. One of its two shares is held by Mr Goodman and the other by his wife, Catherine, who is described in company documents as a housewife.

The directors of Irish Food Processors are: Mr Ronald Bolger (chairman); Mr Goodman; Mr John O'Donnell; Mr Patrick Jordan; Mr Carl McCann; Mr Brendan McDonald and Mr Ian Morrison.

Mr Morrison is a former Central Bank director and a former governor (director) of the Bank of Ireland. He is also a former director of Carbury (Ireland) Ltd and PJ Carroll & Co Ltd.

Mr Bolger is a former director of Telecom Éireann plc, the Barretstown Gang Camp Fund Ltd, the Great Famine Commemoration Concerts Ltd, KPMG Corporate Finance Ltd and Greencore plc.

Mr Carl McCann is a director of Fyffes plc, among others.

The principal operating subsidiaries of the group include: AIBP Ltd; Anglo Irish Beef Processors Ltd; Irish Food Processors Finance BV (the Netherlands); and Anglo Beef Processors Holdings Ltd (UK).