Business

Dunbia set to be north's next billion-pound company

Jim Dobson, managing director of Dunbia Group, with the then Enterprise, Trade and Investment Minister Arlene Foster. Picture by Simon Graham, Harrison Photography 
Jim Dobson, managing director of Dunbia Group, with the then Enterprise, Trade and Investment Minister Arlene Foster. Picture by Simon Graham, Harrison Photography  Jim Dobson, managing director of Dunbia Group, with the then Enterprise, Trade and Investment Minister Arlene Foster. Picture by Simon Graham, Harrison Photography 

DUNGANNON-based red meat processor Dunbia, which is shaping up for a potential sale this year, is set to be the north's next billion pound company.

Turnover at the group rose by eight per cent in the year to last March from £764 million to £827 million.

Pre-tax profit also surged by 40 per cent from £4.6m to £6.6m, despite the fine margins associated with such food processing businesses.

And that makes Dunbia - which started in 1976 as a village butcher’s shop - a major acquisition target after it revealed in December that it was pitching itself to international buyers.

It confirmed that it had received "several serious expressions of interest" from would-be investors over the past two years.

Dunbia is one of the largest processors of lamb, pork and beef for retail and commercial customers across Europe, operating from a dozen sites in Britain and Ireland.

It is involved in the procurement, slaughter and de-boning of cattle and sheep, wholesale distribution and retail packing of beef and lamb.

The company has been led since its formation by brothers Jack Dobson (64) and his brother Jim (62).

In management comments filed alongside its accounts to Companies House, Dunbia said the financial position of the group at the end of the financial period was "satisfactory", driven by the full year impact of new facilities.

It said its future strategy "will continue to be that of product development and volume growth".

And the directors added: "While the group and the industry as a whole have battled with fluctuating livestock prices, the group has been able to work closely with customers in retaining gross profit margin, and will continue to do so."

Its accounts show that despite its group turnover of £826.5m last year, the cost of running the company was £765.1m.

On the bottom line, after all taxes on profit on ordinary activities, its profit was £5,758,278 against £3,387,510 a year earlier.

One of Dunbia's biggest costs was its wages bill, which shot up from £69.6m to £73.8m (pensions costs more than doubled over the period).

But this was due in the main to its staff numbers rising from 3,256 to 3,605, the bulk of whom were in production and distribution.

The accounts also reveal that the company directors took a sizeable reduction in their benefits package - down from £736,167 to £580,000.