Insurance payment lets C&D Foods post €1.1m pretax profit

AN INSURANCE payment of €2.45 million arising from a fire that destroyed its Longford plant helped pet food manufacturer, the C&D Foods Group record a pretax profit of €1.1 million in 2008.

The group is jointly owned by the son of former taoiseach Albert Reynolds, Philip Reynolds, and businessman Larry Goodman. Mr Goodman’s Irish Food Processors (IFP) took a 50 per cent stake in the pet food group in 2008.

Accounts filed with the Companies Office show that despite the insurance payment, pretax profits at the group dropped 72 per cent from €4.2 million in 2007 to €1.1 million to the end of December 2008.

The latest insurance payout in 2008 brings to €14 million the compensation received by the group following a fire that destroyed the group’s canning plant in Edgeworthstown, Co Longford.

Filings show the group has received €8.6 million in fire insurance and €5.3 million in business interruption insurance as a result of the 2006 fire.

The accounts show that the group and its subsidiaries increased revenues by 5 per cent from €87.9 million to €92.5 million in 2008.

They also show the group recorded an operating loss of €1.6 million during the year following an operating profit of €2.53 million in 2007.

However, the accounts show an exceptional item relating to the €2.45 million insurance payout and €930,690 in government grants on assets being destroyed contributed to a pretax profit of €1.1million.

The group paid out €595,780 in bank interest in 2008 following a payout of €486,173 in 2007.

According to the directors’ report, they are “satisfied with the results for the year, in what was a very challenging economic environment. The directors expect the group to be profitable in the coming year”.

They add: “The group invested €20.9 million in the new factory and production equipment in 2008. The group increased its capacity in pouch manufacturing in 2007 and in November 2008, it commissioned four new production lines, which will further increase capacity and reduce operating costs.”

The filings show that Mr Goodman took a seat on the board during 2008 following acquisition of 50 per cent of the group.

The principal activity of the group is the manufacturing and distribution of pet food, mainly under private-label contracts for major retail customers.

The accounts show that the group had accumulated profits of €18.7 million at the end of 2008. The numbers employed by the group increased from 322 to 348, with the increase taking place in production going from 288 to 314.

As a result, the company’s staff costs increased from €12.3 million to €13.4 million.

Directors’ remuneration increased by 28 per cent from €524,357 to €671,944. Mr Reynolds was paid €566,527 in royalties and he also received €660,000 in rental for a premises.