The Farsons Group announced its results for the year ending 31 January. Group turnover amounted to Lm26,189,000, a slight decrease of 1.8 per cent over the previous year’s amount of Lm26,669,000.

Group profit from continuing operations amounted to Lm752,000 while profit for the financial year, after accounting for losses of Lm542,000 from discontinuing operations (including a one time impairment charge of Lm404,000), amounted to Lm210,000.

The board of directors commented that the results were affected by the trading environment in which there was a decrease in demand from tourist outlets, increased activity from parallel imports and lower than average temperatures in the summer months of 2005. Furthermore, additional losses were incurred by certain subsidiary companies.

The board of directors declared that definite action has been taken to address these issues. This includes the selling of the Galleria Entertainment Complex and the downsizing and reorganisation of Guido Vella Ltd. The company has also implemented a cost reduction exercise in operations and administration together with an early retirement scheme for its employees.

The board is confident that these measures will restore the Farsons Group to a healthy profit in the short term.

In the meantime, the investment plan of Lm14,000,000, covering a new soft drink packaging hall and logistics centre, as well as a new brewhouse by 2011, is underway and on target for the first phase to be completed by December 2007.

An interim and final dividend has been approved by the board for recommendation to the annual general meeting to be held on 28 June.