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Exports help Mr Chips

By Phil Boeyen, ShareChat Business News Editor

Friday 3rd November 2000

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Listed food processor Mr Chips is forecasting a continued positive outlook for the rest of the financial year following a profit jump of 55% for the six months to the end of September.

The chip manufacturer has booked a half-year profit of $894,000 compared with $574,000 in the same period last year. Sales increased by 10.5% to $9.5 million from $8.6 million, reflecting increased exports.

While tight control of costs has generally been maintained, the company says margins are now under pressure from higher packaging and fuel-related costs.

Up to the end of September Mr Chips spent $439,000 to extend production facilities in East Tamaki, which are expected to be finished early next year and should improve profits in the 2001/2002 financial year.

The directors of the company say they are pleased the market has significantly re-rated its share price, and senior management has been invited to share in the growth of the company by way of an issue of 240,000 options. The options have a strike price of 90 cents and can be exercised after two years.

An interim dividend of two cents per share has been declared.

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