Wary ABF still sitting on £1bn

THE £1bn cash pile is still intact at Associated British Foods, despite the stream of potential sellers and financial intermediaries that has met the company's five-strong acquisitions team.

The cash was raised by disposals, including six in the past year, which swelled the bid coffers by £142m. Chief executive Peter Jackson said the group's investment criteria and rigorous due diligence have meant no takeovers so far. He has not ruled out any in the current year but says they 'must offer the prospect of adding economic value'.

The last week of ABF's financial year coincided with the terrorist attacks in the US. Chairman Harry Bailey said this resulted in a 'significant number of corporate retrenchments' and forecast that 'consumer confidence will be further dented'. Meanwhile, analysts say the Ryvita-to-Primark retail group may be contemplating selling off British Sugar, its last major acquisition in 1991. Even if sugar beet farmers were lost, ABF would still be British agriculture's biggest customer.

Pre-tax profits in the year ending 15 September were up 5% to £393m. Dividends goes up 5% to 11.8p, giving another boost to the fortunes of the Weston family which controls ABF. The shares fell 1/2p to 449 3/4p.