Ernest Adams cooks up half year profit

Christchurch cake maker Ernest Adams will depart the stock exchange with a recipe sure to please its new owners, Goodman Fielder.

For the six months to September 30 it baked an operating profit of $466,000 compared with a first half loss of $849,000 last year.

That was on 6.9 per cent increase in turnover to $31.47 million.

Soon to retire chairman Michael O'Neill said exports were up 40.8 per cent on last year, mainly on gains in Australia and Japan. Orders for Christmas are also the best for years and all plants were operating at close to practical capacity.

Lower raw material costs had also contributed to the improved earnings.

Directors Phil Lough and John Clarke have already resigned following Goodman Fielder's successful bid. Mr O'Neill and Keith Jackson will resign on completion of the compulsory acquisition process for the outstanding shares.

Goodman Fielder have appointed Doug McKay, Colin Wise and Ross Barnhill as replacements.