23rd Sep 2013 07:44
LONDON (Alliance News) - AG Barr PLC Monday reported higher revenues for the first half, but a drop in profits due to costs related to its failed merger with soft drinks rival Britvic PLC.
AG Barr reported pretax profit of GBP13.2 million, down from GBP14.8 million a year earlier, as a result of GBP3.4 million in exceptional items in the first half, including GBP2.0 million in professional and legals costs from its failed merger with Britvic, GBP0.9 million from the set up of a production and distribution facility in Milton Keynes, and GBP0.5 million in redundancy costs. The group said that cumulative costs associated with the failed merger with Britvic, which have been recognised in this and prior periods, amount to GBP4.9 million.
AG Barr said that excluding these exceptional items, its pretax profit increased 12% to GBP16.6 million, boosted by a hotter UK summer, although its said that price promotions continued to accelerate. After exceptional items, it reported a net profit of GBP10.1 million, compared with GBP11.6 million a year earlier.
The Scottish soft-drinks maker, known for brands like Irn Bru, Orangina and Tizer, said that it is confident in its long term growth potential, and increased its interim dividend by 8% to 2.825 pence per share.
AG Barr reported first half revenues of GBP128.7 million, a 5.8% increase when compared to revenues of GBP121.6 million in the first half of last year. It also said that volume increased by 4.2% in the first half, and in value terms, carbonates grew by 7.0% and still drinks by 2.0%.
The group said that it increased its net assets by 18% to GBP147.5 million, primarily due to the development of its production and distribution facility at Milton Keynes, north of London, and a strong equity and bond performance.
Commercial production at its new Milton Keynes factory has already started, with further commissioning continuing for the balance of the year, AG Barr said.
The company reported net debt of GBP15.8 million, and said that it increased investment in marketing and brand development during the period.
AG Barr shares were down 1.50 pence after the open Monday, trading at 523.50 pence per share.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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