Wiseman issues profit warning

May 12 2008

Shares plunge on back of announcement

Shares in Scottish company Robert Wiseman Dairies plunged by 14 per cent today after it issued a profits warning.

Chairman Alan Wiseman said the combination of the increase in costs, delayed recovery in selling prices and a shortfall in bulk cream revenues was likely to reduce its operating profits in the current financial year by up to eight points million pounds.

The warning came as the East Kilbride based group announced a 15.6 per cent fall in profits for last year to 29.2 million pounds despite a 19.3 per cent rise in revenue to a record 722 million pounds.

Its profits were hit by by a 6.1 million pound fine from the Office of Fair Trading following its dairy retail price Investigation
They were also reduced because of increased finance costs following record capital expenditure of 63.1 million pounds.

Investors will receive a 1p rise in their final dividend to 10p a share which with the previous interim dividend payment gives them a 16.7 per cent increase during the year.