Page last updated at 11:20 GMT, Monday, 16 November 2009

Robert Wiseman profits leap 81%

Robert Wiseman milk
Wiseman profits were boosted by a new contract with the Co-op

East Kilbride-based dairy firm Robert Wiseman has reported an 81.5% rise in first half pre-tax profits, to £21m.

The company said an increase in sales volumes of 11.3% was due to new contracts with the Co-op and two Spar wholesalers.

The group has raised its interim dividend to 5.75p a share, compared with last year's 5p.

However it warned that higher oil prices would put pressure on profits in the second half of the year.

In its outlook, the company said it had seen "a return of significant oil-related costs" which would push the price of plastic and diesel upwards.

New jobs

It estimated this could add £4m to costs in the second half of this year and despite an expected improvement in bulk cream prices, the company said: "It may be difficult to maintain the short-term operating profit per litre levels seen in the first six months."

The group said the increase in volume in the first half of the year provided a number of challenges.

Workers at the group's English dairies were put on a 7-day week to fulfil demand.

However the firm plans to increase the volume at its new Bridgwater dairy in Somerset and its Amesbury site in Wiltshire.

Chief Executive Robert Wiseman said: "With the completion of the investments at Bridgwater dairy and Amesbury depot we are well placed to continue the growth in volumes and to improve operating margins in the medium-term."

The company is recruiting 300 workers for its distribution site at Amesbury.

New appointment

The group also announced that Jack Perry would join the board as a non-executive director in March next year.

Mr Perry recently stood down as chief executive of Scottish Enterprise.

In a statement the company said: "Mr Perry brings a wealth of corporate experience to the board and we look forward to benefiting from his services."

The Robert Wiseman group supplies more than one in every four litres of milk consumed in the UK.

It operates from seven dairies and 15 processing sites and employs more than 4,500 staff.

The firm was founded by Robert Wiseman Snr - the current chairman's father - in 1947.

Print Sponsor

Job losses over dairy firm review
24 Sep 09 |  Devon
Wiseman feels milk margin pinch
18 May 09 |  Scotland
OFT abandons Scottish dairy probe
17 Oct 08 |  Tayside and Central
Dairy firm issues profits warning
12 May 08 |  Glasgow, Lanarkshire and West
Jobs go as milk processing ends
01 May 08 |  Cornwall

The BBC is not responsible for the content of external internet sites

Has China's housing bubble burst?
How the world's oldest clove tree defied an empire
Why Royal Ballet principal Sergei Polunin quit


Sign in

BBC navigation

Copyright © 2017 BBC. The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.

Americas Africa Europe Middle East South Asia Asia Pacific