Hilton Food Group PLC (LON:HFG) said it will pay a dividend as all its meat packing facilities remain “fully operational” and there have not been any significant issues affecting supply through the coronavirus pandemic.
With new business continuity and flexible buying and supplying models established to cope with the outbreak, the FTSE 250 group said it was in daily contact with all its livestock suppliers to manage availability and identify any potential problems with key product lines.
Reporting final results for 2019, Hilton Foods, which now packs all of Tesco’s red meat, said it ended December with cash balances of £110m, plus had committed but undrawn loan facilities of £116mln.
Total volumes last year rose 7.8% to 371,700 tonnes to help lift revenue 10% to £1.81bn, in line with forecasts,
Underlying profits (EBIT) increased 12.4% to £54.7mln, with reported profit before tax rising 9.2% to £47.3mln.
Net debt ended the year at £271.5mln including leases, up from £26.8mln a year before, as the group invested in its biggest meat factory, in Brisbane, Australia, and a convenience foods facility that opened in Poland, together with acquisitions of a vegetarian protein manufacturer and a sous vide capability.
Directors decided to maintain the dividend was "appropriate, given the continuing strategic progress achieved in 2019 and Hilton's strong cash generation", with a proposed final dividend of 15.4p per share taking the total for the year to 21.4p, flat year-on-year.