Irish food, electrical and packaging group James Crean warned today that if adverse trading conditions continue at its US food businesses, the group's results for 2001 will be "significantly down relative to the previous year".
The group said in a statement that while its trading results for the year 2000 are likely to be in line with expectations, management accounts through February 2001 indicate a further downturn relative to the same period in 2000.
The group also said it is in discussions over a possible offer for its US food businesses, although there is "no assurance that these discussions will result in an acceptable, or any offer, being made for the company."
"It is the opinion of the directors that an offer, if made, will not exceed a price of 35 cents per share," the company said in a statement.
The group added that as a result of the adverse trading results, the US companies will be in breach of their bank covenants as of March 31st 2001.
"These breaches are likely to continue for the remainder of the year and US management are actively seeking to reschedule the food companies' debt of around $40 million." it said.
AFP