Co-owner of Cappoquin Poultry, Tom Vaughan, confirmed the move yesterday when commenting on accounts filed by the Co Waterford firm showing it recorded a pre-tax profit of almost €300,000 in its first full 14 months of operating after rescuing almost 200 jobs at Cappoquin Chickens.

According to Irish Examiner.com, in accounts just filed to the Companies Office by Cappoquin Poultry (Holdings) Ltd and subsidiary, the company recorded a pre-tax profit of €295,846 from 3 October 2008 to 31 December 2009.

Cappoquin Chickens went into liquidation in 2008 and was rescued by Perwaiz Latif, Zahid Hussain and Mr Vaughan. Prior to the three buying out the company, 200 jobs were in doubt and the accounts show Cappoquin Poultry employed 174 at end December 2009. There are currently 165 employees.

Mr Vaughan said yesterday that "the first-period results were satisfactory".

The firm’s facility can process 500,000 units per week. However, he said some staff are now on a three-day week as a result of the cut in production. "This will be reversed when production is increased.

"Chicken food costs have increased by 55 per cent per bird which we have not been able to recover in the market. This food cost increase has occurred in the latter half of 2010 and into 2011.

"This has a major impact on margins and will impact on the results. The company has temporarily cut back by 25 per cent in production, but plans to reverse this cut in the second half of 2011 when it is anticipated chicken food prices will fall after the harvest."

The figures for the new firm, Cappoquin Poultry, show it had revenues of €31.1 million in its first 15 months.

The company’s cost of sales, along with staff costs of €4.3m and other overhead expenses at €3.75m, resulted in the company having a group operating profit of €234,834.

The figures show that interest income boosted the group’s earnings by €198,000 with interest payable and other charges of €136,968 resulting in the pre-tax profit of €295,846.