Shares in Donegal Investment Group (formerly Donegal Creameries) have jumped almost 5% this week to €10.40 after the company announced a strong set of half-year results.

Donegal shares have gained more than 35% since the start of 2019, making it one of the strongest performers on the Irish stock exchange.

Donegal this week announced half-year operating profits of €3.8m, which was an increase of 22% compared to last year.

The group’s net cash position reduced from €46m last year to just under €3m at the end of May after Donegal returned €51m in cash to shareholders last August

Operating profit margins in the business widened to 8.3% in the six months to the end of May 2019, which was up from 7% in the same period last year. Turnover for the first six months of its 2019 financial year increased by 5% to reach €46m.

The group’s net cash position reduced from €46m last year to just under €3m at the end of May after Donegal returned €51m in cash to shareholders last August following the sale of a number of non-core assets.

The strong performance was driven by Donegal’s seed potato business, which saw turnover increase 3% to €19.2m as profits soared 20% year on year to €2.7m.

The drought which hit Europe last summer led to significant price increases for both seed and ware (table) potatoes, according to Donegal.