THE FLAHAVAN'S cereal producing company, one of the oldest food companies in Ireland, made a pretax profit of €649,560 in the year to June 30th, 2007, on a turnover of €10.3 million.
During the year the group's holding company paid €946,000 to Edward Flahavan to buy back his shares and the shares were cancelled.
The group is owned by chairman John Flahavan, whose family has run an oat mill at Kilmacthomas, Co Waterford, since the late 1700s. The business sources its oats from farmers within a 50-mile radius of the mill.
Mr Flahavan told The Irish Timesthat in the past 12 months, oat prices have increased by approximately 70 per cent. "That will knock some of the gloss off" next year's figures, he said.
The €10.3 million turnover figure in the latest accounts for Edward Flahavan Sons is an 11 per cent increase over the 2006 figure. However, the pretax profits in 2006 were higher, at €1 million, due to a number of factors.
In 2007, the company paid a dividend of €946,000 to its holding company, Finegrove Holdings Ltd, the same figure that company in turn paid to Edward Flahavan for his shares in Finegrove.
At year's end, Edward Flahavan Sons had total shareholders' funds of €5.28 million.
Staff costs for the company were €2 million, up from €1.7 million the previous year. The staff costs included directors' remuneration of €368,000. The average number of persons employed, including executive directors, was 48.
The accounts show that during the year, the company paid royalties of €181,380 to a subsidiary company, Calusa Ltd. The accounts for Calusa show that at June 30th, 2007, it had total shareholders' funds of €388,103 having paid a dividend during the year of €152,000.
The dividend was shared among eight shareholders who hold various classes of shares and many of whom are members of the Flahavan family. Edward Flahavan Sons holds 82 per cent of the total Calusa equity, but did not share in the dividend payout.
The Flahavan's product sells in both the UK and Ireland and is stocked by all the major supermarkets.
Mr Flahavan said that the growth in popularity of porridge in recent times had proved profitable for the group. Increased health consciousness and the fact that porridge had become "trendy" had facilitated sales. The company had engaged in product development and had produced "single serving" packaging to make the consumption of porridge more convenient.
He said that in the 1930s, there were 52 producers in the Republic but there were now only two, Flahavan's and Odlums.
The Flahavan's website says the area around Kilmacthomas has a particular micro-climate that is conducive to growing a better quality oat grain.
