Dairy Crest butters up public but takes a hit on sales

Profits for the year to March are dead flat at £77.8 million, on sales that slipped 2% to £1.6 billion.

Chief executive Mark Allen reckons he's protecting the British public from the worst of the inflationary pressures that are hitting all businesses.

Dairy Crest's costs are up 10% this year, but a pint of milk has not jumped by the same amount as the company makes internal costs savings.

"We recognise that consumers are having a tough time," he said.

In December Dairy Crest started supplying Tesco with milk after a six year haitus. It provides the supermarket giant with 5% of its milk.

Debts are down 7% to £312 million and the divi is shoved up 4% to 14.2p.

The shares have had a decent run, but today slipped 4.2p to 397.4p.

Brokers Peel Hunt says the company faces "significant headwinds" and advises clients to dump the stock.