Intense competition continues for Wiseman

Managing director Billy Keane said the company was well placed to handle "this period of intense competition. We have the best dairy and distribution network in the industry, headroom to accommodate future volume growth, a robust balance sheet, low debt and intend to maintain dividend payments in line with last year." For the six months ended 2 October, sales volumes were up 8.0% with turnover increasing by 6.8% to £452.8 million (2009 : £423.9 million) but pre-tax profit fell by 3.5% to £20.2 million. Wiseman recently reported intense competitive pressures across all sectors of the market that would knock its second-half trading profit by around £7 million and, assuming no improvement in margins or volume gains, by approximately £16 million in the financial year to 31 March 2012. As a result, the business would continue to focus on a reduction in costs maximising efficiencies. A number of major contracts had been renegotiated and intense competition had reduced selling prices, the company said. However, supply chain operations were performing well, with progress being made in relation to maximising efficiencies and minimising costs. With the third and final phase to increase capacity at Bridgwater completed this month on time and in line with budget, the total capacity available to the group will amount to 2 billion litres, allowing the peaks in sales over Christmas and the New Year to be comfortably accommodated. In the longer-term, Wiseman said it would"look to maximise the throughput at our dairies to ensure they operate as efficiently as possible".