A strong set of half-year results and a bullish report by ABN-AMRO analysts in Dublin and London have driven IAWS shares to their highest level for a year. The share closed up 25 cents at €4.00 (£3.15) on the Dublin market after the results and were well-bid at that closing level. The shares peaked in the first half of 1998 at €4.25 (£3.35).

IAWS has continued its record of strong growth, with pre-tax profits in the half-year to the end of January up 33 per cent to €12.9 million (£10.2 million). Turnover in the half-year rose from €350 million (£275 million) to €385 million (£303 million), while earnings per share were up 35 per cent to 8.26 cents (6.51p).

The half-year included a full six-month contribution from the Cuisine de France subsidiary, which is understood to have performed exceptionally well. The other food operations, Shamrock Foods and Bolands, also put in strong performances in the first half, according to the chief executive, Mr Philip Lynch.

The agribusiness division was boosted by higher livestock numbers on Irish farms and the shortage of winter fodder, which resulted in higher demand for animal feed. While the fertiliser business in the UK remained difficult, the Irish fertiliser business was boosted by increased demand for early spring grass.

The protein and oil business performed well in the first half despite a weakening of market prices.

Despite the first half being a period of high working capital requirements, IAWS was still able to reduce its debt from €108 million (£85 million) to €100 million (£79 million), while interest charges in the first half were covered 4.2 times by operating profits, compared to a cover of 3.5 times in the first half of last year.

Shareholders are being rewarded with a 15 per cent increase in the dividend to 2.459 cents (1.937p) per share.

The report from the ABNAMRO analysts makes a strong argument that, despite having a shareholder base that is overwhelmingly Irish, IAWS deserves to have a wider following and is rated modestly against its peer group, which includes Associated British Foods, Greencore and Finnish group Cultor.