Dairy Crest raises bad debt provision after Quadra Foods calls in administrators.
M2 EQUITYBITES-February 13, 2012-Dairy Crest raises bad debt provision after Quadra Foods calls in administrators(C)2012 M2 COMMUNICATIONS http://www.m2.com
UK dairy food company Dairy Crest Group plc (LSE:DCG) reported today that it will increase its bad debt provision by up to GBP4m after one of its customers went into administration.
Dairy Crest is owed a total of GBP4m by Quadra Foods Limited but the company said that it is looking at several options to reduce the amount involved.
Any charge resulting from this matter is expected to be treated as an exceptional item in 2011/12 and will not impact on the company's dividend considerations.
Dairy Crest noted that its annual sales amount to some GBP1.6bn and this is an isolated incident which will have no material effect on its year-end borrowings. Additionally, the company said that its trading continues to be in line with expectations.
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|Date:||Feb 13, 2012|
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