Operating profits at Irish food group Chivers, which was sold to UK-based Premier Foods earlier this year for £21 million (€32 million), tumbled more than 50 per cent last year to just over €1 million as sales fell 19 per cent to €34.2 million from €43.2 million in 2005.

The deterioration in the company's performance during the fiscal year is likely to have dented its valuation prior to its acquisition. In July, Premier Foods announced that it would close the Chivers factory in north Dublin, as well as a distribution facility in Tipperary, with the loss of over 100 jobs.

Production will cease next month, although Premier Foods has said that a new production facility will be constructed, but has declined to name the location.

Chivers, which had previously been a subsidiary of Premier Foods, was acquired by management more than eight years ago. The buyout from the UK group in 1999 was led by Chivers's managing director Liam O'Rourke, who has now been appointed managing director of Premier Foods Ireland.

Chivers was wholly owned by Palladius Investments, in which Mr O'Rourke held almost a one-third shareholding, which would have seen him realise almost €10 million from the sale of the firm.

Other directors included finance director Cathal Drohan, who gained almost €9 million. At the end of 2006, Palladius had tangible fixed assets worth €9.4 million. Chivers had closing shareholder funds of €31.8 million at the end of 2006.

Accounts just filed for Chivers, which sells more than 60 per cent of the jams sold in the Republic, also reveal that the company posted a €13.4 million gain on the sale of its Coolock plant in October 2006, boosting its pre-tax profit to €15 million.

The company's management team received combined total remuneration of over €552,000 last year, down from €684,000 in 2005. A dividend of more than €300,000 was also paid in 2006, down more than 72 per cent on the figure of €1.1 million in 2005.