GREENCORE TO FOCUS ON UK AND US MARKETS - Food group Greencore says its group sales reached €434.5m from continuing operations for the six months to March 26, an increase of 2.1%. Convenience food, which makes up 90% of the group's profit, had a strong first half. Greencore says a key highlight of the six months was the disposal of the group's malt and water businesses.
Chief executive Patrick Coveney says that Greencore is now a focused chilled food company with an emphasis on growth in the UK and US. It says it has seen growth of 27% in the US and has invested a significant amount of capital in the US market. He says that what is most encouraging from today's results is the 6% profit growth in the UK. He says that as well as stronger sales, the company is seeing good margins growth.
Mr Coveney says that Greencore continues to have modest operations in Ireland. The company is aiming to increase sales from €10m to €20m, and also retains a lot of property interests here. He says that Ireland remains very important for the group and points out that the company is a major buyer of Irish foodstuffs and ingredients. But he adds that the UK and US remain Greencore's two areas of main focus.
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C&C REMAINS CAUTIOUS ON IRISH & UK MARKETS - Drinks group C&C's says the rate of decline in Magners sales in the UK has improved. It says overall cider volumes increased by 5.9% year on year. C&C says it is cautious on the macroeconomic outlook for both Ireland and Britain but confident in its brand strengths and trading strategies.
Stephen Glancey, C&C's Financial Director, says the company's focus remains on its Irish and UK businesses and on integrating its new recent acquisitions Tennent's and Gaymers. He says the company is also hoping to get shareholder approval for its move to sell its spirits division. On the future outlook, Mr Glancey says that the consumer environment remains challenging and C&C is cautious on recovery in both its Irish and UK markets.
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MORNING BRIEFS - Providence Resources has told the Malaysian oil firm Petronas that it will not complete the Kinsale Head transaction that would have seen it buy 40% of the Kinsale Head assets, because, among other thing gas prices have fallen. 'The economics of the deal will have therefore changed materially,' Providence said. Chief executive Tony O'Reilly said the transaction no longer represents the same opportunity for shareholders.
*** A report from property website Daft.ie has found that rents fell by an average of just under 0.5% in the first three months of this year. It said rents rose in January, before falling again in the next two months. The average rent nationwide now stands at just under €760 a month, and Daft says rents are now 25% below their peak in early 2008. The report says rents in Dublin and Cork cities have stabilised since the start of the year - though they are still down 14.3% and 11.8% respectively compared with the first quarter of 2009.
*** Glanbia PLC holds its AGM today, with the board facing its shareholders for the first time since its proposal to split the Irish co-op business from the plc was defeated.
*** On the currency markets, the euro is trading at $1.2273 cents and 85.64 pence sterling.
