Budgens, the British supermarket chain in which Musgrave has a 28 per cent stake, has reported strong results for the year to the end of April. Pre-tax profits were up from £14.6 million sterling (€24.4 million) to £17.2 million, while sales were up 6 per cent on last year at £477 million.

Musgrave has the option to increase its stake in Budgens to 43.5 per cent in September by converting loan stock. If this option is exercised it will bring the cost of the 43.5 per cent to £115 million. When it acquired its stake in August last year, Musgrave gave a commitment to the Budgens board that it would not bid for the British company without the agreement of the board unless Budgens receives a bid from another party.