Reduced profits at C&D Foods

C&D Foods, the pet food group founded in 1969 by former taoiseach Albert Reynolds, made a reduced profit on a significantly increased turnover in 2005, according to accounts just filed.

The company made a pretax profit of €2.45 million on a turnover of €92.15 million. This compared to a pretax profit of €2.85 million in 2004, on a turnover of €70.46 million. The accounts state that the company's cannery production plant at Edgeworthstown, Co Longford, which was seriously damaged by a fire in January of this year, was insured.

"Insurance compensation has been agreed for loss of profits and for assets destroyed or damaged," the accounts state. The amount of agreed compensation is not given. The accounts also state that 260 employees have been made redundant, due to the considerable length of time estimated for reinstatement of the plant.

The business, which has grown substantially in recent years, has been owned for some time by Mr Reynolds's son, Phillip Reynolds. It has built up substantial orders from retail multiples and is one of the largest pet food companies in Ireland and Britain. The group manufactures and distributes pet food mainly under private label contracts for the retail multiples.

"Turnover increased strongly in 2005," the 2005 accounts state. "However, in a competitive market, profit margins declined from the prior year's levels."

The cannery continues to be out of production. In March the company issued a statement asking for "some breathing space" before it announced its future intentions.