UK dairy company Robert Wiseman Dairies has said dairy farmers’ cooperative First Milk has offered to buy a 15% stake in the company.
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Robert Wiseman said First Milk is making a tender offer for approximately 15% of the company’s issued share capital in a move that is expected to result in a closer working relationship with primary producers, greater security of supply and a more efficient supply chain.
The company also reported its interim results for the six months to 2 October, describing “a good performance in an industry challenging period”.
Operating profit for the six months rose 3.7% to £15.0m (US$27.7m), while pre-tax profit increased 12.2% to £15.3m. Sales volumes increased 7.4% to 607 million litres, and turnover rose 10.0% to £245.3m.
“The first half of this year has undoubtedly seen the most significant changes within our industry since our flotation. We were disappointed to have lost out on the Asda contract but net volumes will increase by 100 million litres through our contract wins with Tesco and Sainsbury’s,” said chairman Alan Wiseman.
“Supply positions were secured with Somerfield, Netto and the Big Food Group. As the new business wins settle in, the group will over time be able to reduce costs and restore margins. Our portfolio of customers is second to none and we have the best invested facilities in the industry. We remain positive about our prospects,” he added.
