Albert Bartlett felt the “brunt of deflation” in 2014-15, and saw its turnover and pre-tax profit fall.
According to accounts for the year ending 31 May 2015 filed at Companies House, the potato and veg giant’s turnover fell from £174.5 million – a figure that saw the business hold 12th spot in the most recent FPJ Big 50 Companies – to £144.6m. Pre-tax profit, meanwhile, fell from £11.5m to £8.5m.
Sales and marketing director John Heginbottom told FPJ that although the company felt the brunt of deflation in terms of sales, the directors were pleased with the performance in the financial year, with the profit margin more or less the same as the previous year’s figure.
In his director’s report accompanying the accounts, director Ronnie Bartlett said: “The exceptional growing season in 2014 led to high yields of potatoes, generating a large oversupply of crop and resulted in deflationary pressures which have been particularly acute in the UK market.
“While the trading environment presents challenges, the group continues to develop and promote the Albert Bartlett brand and remains fully committed to the development and success of our exclusive premium varieties and our own-label offering.”
Bartlett also noted that the group had achieved growth in the US and Middle East. While the firm ceased operations at its Amalgrow farming business in Jersey, as it was no longer sustainable, it is instead focusing on packing and promoting Jersey Royals, and property ownership.
Heginbottom, meanwhile, said that Albert Bartlett “needs to diversify its product range into frozen” going forward. This plan was boosted in April 2015 when the business purchased a former Heinz factory in Norfolk to cater for the production of frozen goods, and the range was given a helping hand over Christmas 2015 by a prominent TV advertising campaign.
Plans are also afoot to build a new potato processing factory at the firm’s Airdrie site, and Heginbottom hinted that Albert Bartlett could diversify into more prepared products alongside its increasing push on the frozen front.
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