LONDON (ShareCast) - (ShareCast News) - AIM-listed meat packing business Hilton Food reported a jump in first-half pre-tax profit on Tuesday as revenue rose and the company made good strategic progress with its existing customers in Portugal, Central Europe and Australia.
In the 28 weeks to 16 July, pre-tax profit was up 10.4% to £18.4m on revenue of £690.7m, up from £631.9m. Volumes rose 8.7% to 160,848, mostly driven by Australia and Portugal, and the group lifted its dividend to 5p per share from 4.6p the year before.

At constant currency, revenues were up 3.3%, reflecting raw material price increases and favourable currency translation.

Revenues in Western Europe rose to £643.6m from £586.6m, while revenues in Central Europe came in at £47.1m from £45.3m in the same period a year ago.

Chief executive Robert Watson said: "Hilton delivered strong volume and profit growth during the period. Our strategic progress continued with entry into Portugal and expansion recently announced in Central Europe where beef deboning has commenced and a fresh food factory will be developed.

"The initial work on our new factory in Queensland, Australia continues with the planning approvals process well advanced. We remain committed to growing our business through innovation and product development as well as exploring a range of new expansion opportunities to further our geographic reach."

Numis said the results were ahead of its expectations. "We think that Hilton's impressive track record and its strong balance sheet means that it is strategically well positioned to capture future growth opportunities," the brokerage said, as it reiterated its 'add' rating on the stock.

At 1045 BST, the shares were up 1.6% to 767.25p.

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE