Closures force Sims Food into red
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.THE RED meat butcher Sims Food has closed 40 per cent of its slaughterhouse capacity as part of a restructuring programme costing pounds 6.6m.
The exceptional cost pushed Sims into the red for the year to 31 March, when losses before tax were pounds 600,000 compared with profits last time of pounds 6.8m.
Sims' shares collapsed early last month when the company warned of the losses. The price was unchanged at 105p yesterday, having fallen from 182p before the profits warning.
Closing slaughterhouses cost Sims pounds 2.3m. The company was badly hit by a delay in the implementation of European Community health and hygiene regulations until 1996. Sims had upgraded its plant to meet the regulations but found its operation undercut by cheaper abattoirs that had not complied with the EC rules.
A further pounds 1.3m of exceptional costs was incurred in closing three distribution depots. Another pounds 1.3m was written off the value of two companies acquired in the late 1980s, Country Feast and J Redmond.
Sims also wrote off pounds 1.8m on machinery that was meant to tenderise beef and pork. After three years the machinery was found to be useless.
Overall operating profits for the year to 31 March slumped to pounds 5.9m against pounds 10m. Sims was hit by the devaluation of sterling, which made UK-produced meat attractive in price to overseas buyers but also forced meat prices up.
Sims had to take cost increases on itself because supermarkets refused to pass costs on to consumers.
The total dividend was cut by a third to 7.5p.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments