Potato price rise chips in to lift sales

PRODUCE Investments, the Scottish farming group, yesterday reported strong growth in sales on the back of high potato prices and a number of customer wins.

In a year-end trading statement the company, which raised 15 million in November when it listed on Aim, said turnover for the year to 25 June rose by around 9 per cent and that operating margins were in line with management's expectations. It added that cash generation has resulted in year-end net debt being significantly lower than last year.

"The market remains fiercely competitive and the difficulties facing the UK consumer are well documented. However, the board is confident that the company is well positioned to both grow organically and to take advantage of any acquisition opportunities," it said.

Produce, which supplies potatoes to the likes of Tesco and Sainsbury's, employs about 200 at its operations in Duns, Berwickshire, and Perthshire. The company is better known by its Greenvale subsidiary name. Along with Airdrie-based Albert Bartlett, it is one of the top potato growers and packers in the UK.

• Former foreign secretary Sir Malcolm Rifkind has bought his first stake in Continental Farmers, the agricultural group led by Scottish farming entrepreneur Mark Laird. Rifkind, a non-executive director, bought 30,000 shares at 31p each. The company, which joined Aim last month, owns farming interests in the Ukraine and Poland.