Analysts have predicted a bright future for the organic box-scheme sector after Abel & Cole posted an impressive set of financial results.
The company, which was bought by the William Jackson Food Group in October last year, recorded pre-tax profits of £3.1 million for the year to 31 August 2012, up from £1.9m the year before, figures released to Companies House reveal.
Defying tough times in the economy generally and the organic sector in particular, Abel & Cole also significantly increased turnover from £35.7m in 2011 to £46.5m.
Directors Keith Abel and Ted Bell said in their report that their objectives are to continue to grow the core business through “increasing customer recruitment; improving customer retention; increasing average order value; and increasing the efficiency of the operation through reduced costs and improved productivity”.
Duncan Swift, a partner at Moore Stephens, said the results were a sign that Abel & Cole had resolved its problems and is getting its customer offer right. “The turnaround strategy directors put in place since the dire results in 2010 are still flowing through,” he said. “It comes across as a company that is on top of its game.
“It is clear from the accounts that Abel & Cole is majoring on customer retention and increasing order volumes. Customer satisfaction is also a major focus of the business.”
Swift added that the fact average monthly staff numbers over the year at Abel & Cole had increased from 334 to 421 showed a commitment to expanding the operations.
“Clearly the William Jackson Food Group would have been aware of the turnaround plan when they went through due diligence and they can see that they have got a fair deal and it’s justifying the investment,” he said.
“The organic box scheme sector is not yet saturated and has clear growth potential.”
Abel & Cole now face increased competition in the organic veg box market after the UK's leading supermarket Tesco launched its own Soil & Seed branded box service exclusively into London last year.
