Companies: DCG   

Shares in the chilled dairy foods group fell 35p to 512p on a bout of profit-taking, despite better-than-expected full-year figures to March. Pre-tax profits put on almost a third, at £74m (£57m), on a turnover gain from £1.31bn to £1.37bn. Higher profits from its spreads and mature cheese products offset a weaker performance by its commodity ingredients business and lower milk production. Previously, house broker ABN Amro was looking for a £73m profit, with £85m pencilled in for 2003. The board says the acquisition of Unigate's dairy and cheese business, as well as lower raw milk costs from April, should boost results for the second, rather than first, half of the current year. The shares have surged recently. At 512p, they are trading between a 52-week low of 238.5p and a high of 566.5p. We flagged up the stock as being undervalued in the May issue of Growth Company Investor. Still a 'Buy'.