Farsons Group increases turnover by 2%

Farsons Group last week announced that its turnover has reached Lm22,927,000 an increase of two per cent last year.

The Group also announced a consolidated profit after taxation and minority interest of Lm592,000. The Group’s turnover was achieved despite the difficult business environment in the sectors in which the Group operates.

The Group’s profits were adversely affected by exceptional charges of Lm608,000 representing bad debts due to a default of two supermarket chains (Lm353,000) and by impairment of assets (Lm255,000). The latter arose from the closure of two fast food outlets as a result of the restructuring of Food Chain (Holdings) Limited. Farsons stated that the acquisition of the 7-Up franchise in January 2002 and the restructuring of Food Chain is expected to help to improve the operating performance of the Group.

During the year, the Group consolidated its property holdings under its subsidiary Trident Developments Limited. This Company also acquired a further 20 per cent of the share capital of Galleria Management Limited, bringing the total shareholding in this Company to 70 per cent.

The Directors of Simonds Farsons Cisk p.l.c. have already declared and distributed a net interim dividend of Lm60,000 to the shareholders of the ordinary shares and are recommending the payment of a final net dividend of Lm340,000.

The dividends are being paid out of tax exempt profits resulting in a total net dividend to the ordinary shareholders of Lm400,000 equivalent to 1c7 per share, maintaining the same return as the previous year. A dividend of six per cent is also paid on preference shares bringing the total amount of dividends paid to Lm580,000.