Fyffes vice chairman Carl McCann told shareholders at Friday's AGM in Dublin that there was no rights issue in the pipeline, beating off speculation that the firm was considering raising capital with which to buy out fruit firm Chiquita.Carl McCann claimed there had been confusion surrounding the resolution allowing directors to allocate shares, and this issue had been voted on by shareholders sine the mid-1990s.
'We take the power at every general meeting to give the directors authority to place shares, and that has caused some confusion. It's a standard resolution for this company and other companies. We have no rights issue in train at the current time,' Carl McCann said.
Fyffes chairman Neil McCann said that the group's performance last year represented a highly satisfactory outcome, achieved in 'more than challenging market conditions'.
Neil McCann said the firm had continued in developing its business through acquisitions and capital projects and had invested €60m this year in such projects.
'We completed two important acquisitions last year, continuing our expansion in Continental Europe. Hortim International is one of the leading distributors of fresh produce in the Czech Republic. Interfrucht Weichert, based in Hamburg, is a significant distributor of bananas and pineapples in Northern and Central Europe. This acquisition increases the Group's share of the EU banana market to 17%, making us the second largest operator in that market,' he said.
The chairman added that group performance to date in 2003 is in line with market expectations, that Fyffes has a strong balance sheet, significant cash resources and cash generating capabilities and a focused and ambitious management team.
In relation to the ongoing Fyffes row with DCC, Carl McCann said the situation was ongoing as previously reported and it continues unchanged.
Fyffes shares closed a cent lower at €1.54 in Dublin on Friday evening.
