The newly-acquired Cuisine de France bakery business chipped in a month's earnings to half yearly profits at agri-business group IAWS but the bulk of the group's 25 per profit improvement came from well-established subsidiaries and associates. Interim results this week showed that IAWS improved its margins in the six months to end January, pre-tax profits surging 25 per cent to £7.6 million on turnover 11 per cent ahead at just under £300 million. Some 30 per cent of IAWS income and profits come in the first half due to strong pre-growing season sales of fertiliser and animal feeds.

Money continues to flow in the direction of Messrs McNamee and Loughrey, major beneficiaries of the Cuisine buy-out. They will receive an extra £3 million under the terms of the earn out deal, a sum additional to £40 million up-front payment last year at the time of the acquisition. Over the next five years a further £8 million will come their way if profit targets are achieved. IAWS has ambitious plans to develop Cuisine de France, the business offering margins of around 10 per cent compared to just under 3 per cent from other divisions. Some £30 million has been earmarked to develop the business in Ireland and the UK, improving production facilities and adding to the existing 3,000 outlets. With the yeast of growth lifting earnings per share 24 per cent to 4.81p, the freshly-baked scent of rising dividends waft towards shareholders, as interim payment increased 10 per cent to 1.684p a share.