FYFFES, the fruit and vegetable distribution group, should increase its pre tax profit from £42.0 million in 1995 to £47.2 million in 1996 and to £53.4 million in 1997, according to NCB Stockbrokers. Earnings per share are projected to rise from 7.9p to 8.8p and to 10.3p over the same period.

The review notes that Fyffes has significantly improved its strategic position in the EU and increased earnings by 30 per cent over the last two years. NCB expects similar growth over the next two years.

It estimates that the combined Fyffes and Geest banana business is the No 2 player in the EU, with a market share of some 20 per cent. In Britain, the combination supplies close to 50 per cent of the market.

While Geest is to operate on an arm's length basis from Fyffes, NCB expects scope to achieve cost savings in both operations as resources are combined in a number of areas. The review sees the appointment of Mr Chris Comerford as chief executive officer of Geest as significant, as he has a reputation for keeping a keen focus on the cost base".