The Newry headquartered Roebuck Food Group plc has confirmed that it has sold its dairy division based in Co. Kilkenny for €1.45 million.
According to the group it consisted of a dairy farm of 183ha – held on a number of occupational leases – with 470 milking cows.
The group, which is listed on the London Stock Exchange’s Alternative Investment Market (AIM) is focused on the food and agri-business sectors.
In a stock market announcement Roebuck Food Group confirmed the sale of its dairy division, which is made up of its wholly-owned subsidiary Cantwellscourt Farm Limited, incorporated in Ireland, “to an unrelated partnership engaged in the Irish dairy milking industry”.
It said that “following the settlement of indebtedness and the operation of a completion accounts adjustment mechanism in the share purchase agreement, this will result in a consideration receivable by the company of approximately €1.3 million”.
According to the Roebuck Food Group the directors “consider the terms of the disposal to be fair and reasonable and in the best interests of the company and its shareholders as a whole”.
It also detailed that for the year ended December 31, 2023 the dairy division had generated revenue of €1.6 million, loss after tax of €0.5 million, and had net assets of €1.44 million.
Dairy
The Northern Ireland group said the disposal of its dairy business means that the group will now focus on the milling and importation of food and ingredients and product sourcing only.
“The disposal realises cash proceeds for potential future acquisitions or investments, and for the general corporate purposes of the company and its subsidiaries,” Roebuck Food Group.
In the share purchase agreement, Roebuck Food Group has given “various warranties and indemnities to the purchasers, concerning (among other things) the share capital, business, and assets of Cantwellscourt Farm Limited”.
In its 2023 annual report the Newry headquartered group had highlighted its focus “on delivering shareholder value through efficient capital allocation”.
In its latest market update, following the sale of its dairy business, the directors said that they consider “the current trading of the continuing group is in line with expectations and remain confident of the continuing group’s prospects for the current financial year”.