Greencore Group plc has reported solid, if lacklustre, results for the half-year to the end of March, due mainly to a different seasonal pattern of sugar sales and a weak world price for malt.

The company had decided to divest itself of its interest in the giant US sugar producer, Imperial Sugar, and is "actively pursuing an appropriate solution".

Profit before interest and tax for the six months to March 24th was up 6 per cent on the same period in the previous year from £32.7 million (€41.6) to £34.7 million (€44.1) on sales down by 2 per cent to £331 million (€420 million).

Earnings per share rose from 11.4p (€14.5c) to 11.6p (€14.7) and the interim dividend is up 9.5 per cent on last year's interim payment from 3.15p (€4) to 3.45p (€4.38).

Mr Kevin O'Sullivan, chief financial officer, reported that sales and profits were adversely affected by a reorganisation carried out in Greencore's malt operations, which included the closure of the 50,000 tonne malting plant at Wallingford in England. No reduction of capacity in its Irish malt operations is envisaged.

Two British companies, William Rogers which produces rice and pasta and baking company William Jackson were acquired for around £10 million sterling. They have a turnover of £7 million sterling and £12.5 million sterling.

In the company's sugar division, sales decreased by 8 per cent to £77.3 million (€98 million) and operating profit was down from £13.9 million (€17.6 million) to £12.1 million. Sugar production, at 216,000 tonnes, was ahead of the quota of 200,200 tonnes. Malt sales declined by over £10 million and operating profit by £2 million. Operating profits in its agribusiness sector, rose by 6 per cent in operating profits to £3.5 million on sales that were 5 per cent down to £49.1 million.

Mr Dilger said the Imperial Sugar involvement had been "a very unhappy investment the way things worked out" with the oversupply situation on the US market. The amount at risk from Greencore's initial investment is now €8 million.