Pet food firm dips €1m into red after plant fire recovery
C&D Foods, the Longford pet food manufacturer jointly controlled by Philip Reynolds and beef baron Larry Goodman, plunged into the red during 2008 as it reported an operating loss of nearly €1m.
The reversal of fortune came after the company recorded an operating profit of €1.7m in 2007. Turnover at the group climbed almost 18pc last year to €66.8m.
The C&D factory was extensively damaged by fire in 2006 and the company received almost €2.5m from insurance companies in 2008 from claims related to that fire, according to accounts just filed at the Companies Registration Office.
C&D, which was founded by former Taoiseach Albert Reynolds, was forced to lay off more than 50 staff from its nearly 300 workforce last year as sterling remained weak against the euro. The company exports almost all its output to the UK, with the majority of it being sold as own-label pet food by well-known multiples.
In the latest set of publicly available accounts for the business, the directors say that they are satisfied with the 2008 financial performance in light of a "very challenging" economic environment, and expect the company to have turned a profit during 2009.
The accounts also note that C&D had total borrowings of €15.9m at the end of 2008. That included total bank loans of €13.6m and €1m in preference shares classed as liabilities.
C&D invested more than €20m in new factory and production equipment in 2008, having boosted its production of pet food pouches in 2007 after its cannery operation was destroyed the previous year. At the end of 2008 it commissioned a further four new production lines. The company also operates a factory in England.
Larry Goodman acquired a 50pc stake in C&D in 2008, buying 40pc of the firm from Philip Reynolds and a 10pc holding from Albert Reynolds. The company subsequently pledged a €30m investment in its operations at Edgeworthstown in Longford to boost production.