Dairy Crest, the food company behind the Utterly Butterly and Cathedral Cheddar brands, says it will have to increase its bad debt provision as a result of one of its customers, Quadra, going into administration.
The company will increase its bad debt provision by up to £4m, as that is the total amount owed by Quadra although Dairy Crest says it is looking at several options to reduce the amount involved.
Dairy Crest also says the charge will have no impact on dividend considerations or any "material" effect on year end borrowings.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Over the past 12 months Dairy Crest has lost 13.5% of its value. The company grew out of the old Milk Marketing Board which had to find a use for the 70-80 million gallons of milk that went unsold in the early sixties.
It now has annual sales of £1.6bn.
BS
-
8 of the best properties for sale near ski slopesThe best properties for sale near ski slopes – from a luxury cabin in Geilo, one of Norway’s premier ski resorts, to a large chalet in Valais, Switzerland
-
Cash hoarders take total UK savings to £2 trillion – why aren’t we investing?Investment-shy Brits are hoarding huge amounts of cash in their savings accounts. We look at the case for saving versus investing.
