NEIL McCann's parting shot at yesterday's briefing on the 1996 full year results was to the point. "We believe that 1997 will be another successful year for Fyffes," the chairman said.
And this year also brings the prospect of a share buyback from Fyffes, if no big acquisition can be found to use up the £70 million cash pile.
Most analysts - but not all - agree with the prognosis from the Fyffes chairman. But there is no doubt that the Fyffes management - dominated by the chairman and his two sons, Carl and David - are more optimistic about the short term future of the company than they have been for many years.
Banana prices may benefit from the arrival of China as an importer and a growing movement by the big five world banana producers to increase profits rather than increase their market share.
"We now have an environment where the focus is on profit not market share. We, as joint number one in Europe, can benefit from the approach. Going into 1997, maybe we will see a price increase. They went down in 1996 and we would like to see them go up in 1997," said managing director, Mr David McCann.
In September, when Fyffes sold its Guatemalan banana farms to Dole and pulled out of the US, it also set up a joint shipping agreement with Dole - the world's biggest banana producer.
"The deal we did with them is a positive sign as it was the first time that a competitor suited us as well as themselves. It bodes well," said Mr McCann.
"You give a little to get a little." He said that other major producers such as Chiquita, Del Monte and Noboa are also more focused on profits, rather than market share. "Hopefully, we will see better prices and a better cost base."
The arrival of China as a banana importer "will undoubtedly be of considerable help," he said.
There were occasional weeks last year when Chinese banana imports were equivalent to 25 per cent of the European market.
Finance director, Mr Carl McCann said Fyffes might not even export to China but would benefit from the tightening up of the market as a result of Chinese imports.
On the prospects for the EU banana regime - which is generally seen as benefiting Fyffes with its supplies of bananas from South and Central America, at the expense of Chiquita and Dole - Mr McCann said he did not expect a World Trade Organisation ruling to fundamentally change the quota based regime.
That WTO ruling is expected in April, but appeals by the party that is seen to lose out from the ruling are likely to spin the process to the end of the year. Mr David McCann added that Fyffes was not dependent on the exact regime that currently exists.
The chairman, Mr Neil McCann, said Fyffes remained focused on acquisitions and added "We have only scratched the surface in Europe." Given the strength of Fyffes's balance sheet the company could handle a very large acquisition, but there was a clear suggestion that if Fyffes cannot find a large transaction then a share buyback may be considered.
Mr Carl McCann said that problems with Accelerated Corporation Tax had meant that Fyffes could not previously consider a share buyback. "We think we have overcome that difficulty, so now we have a choice. I have an open mind on a buyback," he said.
Fyffes currently has shareholder approval to buy back about £25 million shares, but the forthcoming a.g.m. more than likely to consider a proposal to substantially increase the number of shares the company can buy back.
