Looking forward, the business expects full-year profits for 2010/11 to be in line with its budget and ahead of last year.
Milk Link has also announced that it has completed the refinancing of the Group. In doing so it has moved from having three separate banking facilities to a single consolidated facility provided by Lloyds TSB, Barclays, HSBC and Rabobank.
The new competitive, longer-term and more flexible facility provides Milk Link with the necessary funding for its ongoing business operations, capital investment programmes and growth strategy.
At the same time, the new financing agreement has enabled Milk Link to end with immediate effect the Member Contingent Liability Guarantee of 2ppl on their previous year’s milk volumes. While the Milk Link board also expects that the strong base provided by the renewal of its financing will allow the ending of the 0.5ppl Member ‘levy’ from 1 April 2011.
Source: Milk Link
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