Newry’s Roebuck Food Group Sells Co. Kilkenny Dairy Business for €1.45M
In a recent development, Roebuck Food Group plc, headquartered in Newry, has finalized the sale of its dairy division located in Co. Kilkenny for a whopping €1.45 million. The dairy farm spans over 183 hectares and houses 470 milking cows, operating under various occupational leases. This strategic move by the group, listed on the London Stock Exchange’s AIM, marks a significant shift towards focusing on the food and agri-business sectors.
What prompted the sale of the dairy division by Roebuck Food Group?
The decision to sell off the dairy division, comprising the wholly-owned subsidiary Cantwellscourt Farm Limited, was made to redirect the group’s attention towards the milling, importation of food and ingredients, and product sourcing exclusively. This move not only unlocks cash proceeds for potential future acquisitions or investments but also aligns with the group’s commitment to efficient capital allocation and delivering shareholder value.
How will the sale impact Roebuck Food Group’s future prospects?
With the completion of the dairy business sale, Roebuck Food Group anticipates a positive outlook for the current financial year. The directors express confidence in the continuing group’s performance, stating that the current trading remains in line with expectations. The disposal of the dairy division allows the group to reallocate resources towards enhancing its core operations and exploring new growth opportunities in the dynamic food and agri-business landscape.
What are the financial implications of the sale for Roebuck Food Group?
The sale of the dairy division is projected to result in a consideration receivable of approximately €1.3 million for Roebuck Food Group, following the settlement of indebtedness and completion accounts adjustment. The group’s 2023 annual report indicates that the dairy division generated revenues of €1.6 million, incurred a loss after tax of €0.5 million, and possessed net assets worth €1.44 million. This strategic divestment reinforces the group’s commitment to optimizing its financial performance and capitalizing on emerging market opportunities.