12m loss forecast for Malton
28 March 2001
12m loss forecast for Malton
By FWi staff
BRITAINs biggest pigmeat processing company has suffered estimated losses of 12 million in the past year as disease and a weak market have taken their toll.
Struggling Malton Foods has had to contend with last years swine-fever outbreak, low prices and now foot-and-mouth disease in the past twelve months.
Its disastrous 2000/2001 showing compares with profits of 15.5m in 1999/2000. But even that figure represented a slump 40% on the previous year.
Announcing its pre-tax forecasts, parent company food group Uniq, formerly known as Unigate, said in the short term that foot-and mouth had cost it 3.5m.
Most of these losses were sustained by Malton, and will fuel speculation that the Uniq will try to sell off the company.
Despite the poor performance of its pig division, Uniq forecast pre-tax profits of 57m in preparation for demerging its logistics arm Wincanton.
It forecasts operating profits of 35m for Uniq Convenience Foods, and 31.6m for Wincanton.
Earlier this year, Uniq dismissed as “pure speculation” reports that it was planning to offload Malton for an estimated 50m.
Uniq is keen to concentrate on its core processed food operation and has already sold its cheese and milk concerns to Dairy Crest.
Industry consultants say Maltons share of the UK kill is now estimated to be only 10-15%, down from 25% three years ago.
Last year the company announced 450 job losses and the closure of its Middlesbrough factory in a bid to cut losses.
Malton employs around 7000 people across 11 sites in England and Northern Ireland.