Fyffes has bounced back from difficult trading conditions in 2000 to post a profit for the 12 months to December 31, 2001. Net profits for the period were ?43.6million compared to a loss of ?700,000 for the 14 months to December 2000.

Huge cost savings, including the disposal of e-commerce operation worldoffruit.com and the closing of three ripening facilities in the UK, have been at the root of Fyffes's return to profit.

Adjusted earnings per share were up 134 per cent with the full year dividend showing a 10 per cent increase in the 12 month period compared to the previous 14-month period as Fyffes brought its financial year into line with the calendar year.

The improved results are also attributable to an upturn in the banana business in Europe. 'Throughout Europe we have seen price improvements across the range of produce, this has been very helpful for us,' chief executive David McCann told the Journal. Market conditions for other lines also improved over the course of the year with better average prices recorded for most of the 12 month period.

Prospects for the coming year also look healthy with trading in January and February in line with expectation and prices a little ahead of last year, said chairman Neil McCann.

'Looking forward, Fyffes will continue to pursue increased shareholder returns through strong dividend flows, enhanced profits and judicious expansion of its business through acquisitions,' he said. Fyffes's net cash is also up 72 per cent at ?150.6m putting it in a strong position for investment and acquisition.

City analysts said that the results were ahead of their forecasts and prospects are bright for the company, especially given current improved trading conditions.