Steady profits at Mid West in run up to merger talks

By Matt Dempsey

IN the run up to what are bound to be intense merger discussions with Nenagh, Mid West has turned in steady results for the year ended December 31, 1998. The results are due to be posted to shareholders this week.

Mid West handles just over 18 million gallons of milk for which it received a total of 23 million pounds in 1998 - up one million on the year before.

Its stores business turned over 7.8 million - up 10 per cent on 1997 - somewhat less than many of its counterparts in other parts of the country in the very difficult autumn of 1998.

Profits in 1998 at 228,000 were almost identical with the year before if the exceptional redundancy and rationalisation costs of £160,000 in 1997 are ignored - a margin of less than one per cent.

Despite these rationalisation and redundancy charges the operating costs of running the society increased by almost £200 thousand or eight per cent in 1998.

Mid West enters its talks with Nenagh in an extremely strong financial position.

It has 1.24 million pounds in the bank and debtors at 7.28 million (or money owed to it) stand at more than twice the amount it owes. Its 27.5 per cent stake in Shannonside is in the books at 0.968 thousand - undoubtedly a very conservative estimate.

In his chairman's report, Eamon O'Connor says that increases in liquid milk sales occurred, but at "very tight margins".