Profits flat as Brake looks to France - annual earnings report; Brake Bros. seek acquisitions in France - Brief Article

Eurofood, March 29, 2001

UK caterer supplier Brake Bros has said it is looking for further acquisitions in France, as it reported flat pre-tax profits for fiscal 2000, which stood at 36.6m [pounds sterling] (57.6m [European Dollar]) compared with 36.5m [pounds sterling] the previous year.

Brake had been anticipating flat results following a profit warning at the beginning of the year. The UK-based firm had said that a combination of floods, bad weather and rising fuel costs had impacted on the group's business (see Eurofood, 16 January 2001, p6). However, turnover increased by a healthy 17% up to 1.1bn [pounds sterling] from 967m [pounds sterling] turned over throughout 1999.

Brake Bros made several acquisitions in France towards the end of 2000, acquiring three French frozen food firms for 16m [pounds sterling], and Frank Brake, chairman of the firm has said that Brake would like to further consolidate its position there. Brake is currently about the fourth largest catering supplier in France with annual sales of 150m [pounds sterling]. Brake, speaking to The Financial Times, has expressed the group's desire to increase its coverage in France from 70% to around 100%. Acquisitions will be of a similar size to those made last year in France, and the firm has already increased borrowing levels in order to accommodate future movements.