first_img Tags: NULL whatsapp Margins too tight to bear whatsapp THE British dairy market is notoriously competitive, but investors were not prepared for yesterday’s shock profit warning from Robert Wiseman. Although its first-half numbers are in line, the second half is going to turn sour. Full-year profits are now forecast to be £7m lower than thought. A crushing round of price negotiations with Tesco is the culprit. It is desperate to match Asda’s milk price, meaning a cut of 12p to £1.25 for four litres. And dairy farmers have waged a successful campaign against the supermarkets, claiming that lower prices mean they are living in poverty. Tesco and rivals are insisting that the farmers are paid more, keeping them happy and avoiding bad PR.So Wiseman is being squeezed by the buyer and the supplier. Its full-year margin this year will be just 2p a litre, falling to 1.5p a litre in 2011-12. Turning a profit on margins this tight won’t be easy, especially as it is holding its dividend at 18p this year. It will undoubtedly have to scale back plans for investment, meaning it will be ill-prepared to capitalise if a recovery in prices arrives. There’s no point crying over spilt milk, but it’s time to offload any Wiseman stock. More From Our Partners Police Capture Elusive Tiger Poacher After 20 Years of Pursuing the Huntergoodnewsnetwork.orgRussell Wilson, AOC among many voicing support for Naomi Osakacbsnews.comWhy people are finding dryer sheets in their mailboxesnypost.comNative American Tribe Gets Back Sacred Island Taken 160 Years Agogoodnewsnetwork.orgKiller drone ‘hunted down a human target’ without being told tonypost.comBrave 7-Year-old Boy Swims an Hour to Rescue His Dad and Little Sistergoodnewsnetwork.orgA ProPublica investigation has caused outrage in the U.S. this weekvaluewalk.comAstounding Fossil Discovery in California After Man Looks Closelygoodnewsnetwork.orgMark Eaton, former NBA All-Star, dead at 64nypost.comUK teen died on school trip after teachers allegedly refused her pleasnypost.comFlorida woman allegedly crashes children’s birthday party, rapes teennypost.comSupermodel Anne Vyalitsyna claims income drop, pushes for child supportnypost.comKamala Harris keeps list of reporters who don’t ‘understand’ her:‘Neighbor from hell’ faces new charges after scaring off home buyersnypost.comInside Ashton Kutcher and Mila Kunis’ not-so-average farmhouse estatenypost.com980-foot skyscraper sways in China, prompting panic and evacuationsnypost.comI blew off Adam Sandler 22 years ago — and it’s my biggest regretnypost.comBiden received funds from top Russia lobbyist before Nord Stream 2 by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeMisterStoryWoman Files For Divorce After Seeing This Photo – Can You See Why?MisterStoryTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastNoteabley25 Funny Notes Written By StrangersNoteableyPeople TodayNewborn’s Strange Behavior Troubles Mom, 40 Years Later She Finds The Reason Behind ItPeople TodayMoneyPailShe Was A Star, Now She Works In ScottsdaleMoneyPailSerendipity TimesInside Coco Chanel’s Eerily Abandoned Mansion Frozen In TimeSerendipity TimesBrake For ItThe Most Worthless Cars Ever MadeBrake For ItBetterBe20 Stunning Female AthletesBetterBemoneycougar.comThis Proves The Osmonds Weren’t So Innocentmoneycougar.comcenter_img KCS-content Show Comments ▼ Share Thursday 16 September 2010 8:26 pmlast_img

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