12th Dec 2005 07:01
Fyffes PLC12 December 2005 Stock Exchange Announcement Fyffes to pay €20 million special dividend to reflect exceptional performance in2005 and looks ahead to 2006 In a pre-close statement released to the Stock Exchange today, Fyffes plc said: "Market conditions, particularly for Fyffes' Tropical Produce operations inContinental Europe, have remained strong during the second half of the year.This has helped offset the significant cost inflation being experienced in thesector and, consequently, the Group is on course to report another recordperformance this year. Fyffes is now targeting a percentage increase inadjusted earnings per share for the full year 2005 in the low to mid twenties,ahead of the Group's previous expectations. In the context of this exceptional performance, Fyffes plans to pay a specialsecond interim dividend for the year of €20 million (equivalent to €0.0572 pershare) on 3 March 2006 to shareholders on the register on 10 February 2006. TheBoard currently anticipates that the final dividend for 2005, which will beproposed for approval at the AGM in May 2006, will remain unchanged from 2004 at€0.052 per share. Looking ahead to next year, the industry is facing a number of significantchallenges. As already signalled, the EU's intention to replace its currentbanana import regulations with a tariff-only regime will increase Fyffes' dutycosts by €40 million in 2006. In addition, the continuing effect of highershipping and fuel costs is expected to add a further €15 million to the Group'scosts next year, at current exchange rates. These higher costs will need to berecovered from customers and suppliers. It will also take some time to assessthe impact on the market of the elimination of quotas on banana volumes importedfrom Latin American sources. Fyffes benefits from having the strongest balance sheet in the industry,including large net cash balances. It also has a property portfolio whichshould generate significant incremental value for shareholders in the near tomedium term. It continues to actively pursue opportunities to apply itssubstantial resources to develop the Group's business through further attractiveacquisitions and alliances." 12 December 2005 For further information please contact: Brian Bell, Wilson Hartnell PR Tel: +353-1-669 0030 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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