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IPL's turnover has grown by almost 50 per cent

Asda’s horticulture and wine buying arm International Procurement and Logistics (IPL) increased its operating profit by 6.1 per cent in the most recent financial year as a result of “improved purchasing and cost control.”

According to figures held at Companies House, IPL recorded a pre-tax profit of £13.4 million, up from £12.5m.

The business also grew its turnover by nearly 50 per cent in the year ending 2 January 2015, going from £137.4m in 2013, to £201.6m - a figure that could see IPL enter the top 10 of the 2016 FPJ Big 50 Businesses.

Speaking in the report accompanying the accounts, IPL group finance director Sian Land, said: “The directors are satisfied with the results and achievements in this period, and believe that the future prospects of the company are sound and consider that the business is adequately financed.

“Revenue increased by 46.8 per cent during the year, primarily as a result of increased sales participation within vegetables, potatoes and to other Walmart companies. Operating profit increased by 6.1 per cent during the year. The improvement was a result of improved purchasing and cost control. The profits of the company are taxed through the parent company tax group.

“The average number of employees increased by 187 year on year (to 1,211 people) as we continued our organic expansion within our business.”

Since the period these accounts cover, IPL, which deals with around 1,150 suppliers, has bought potato packer Westry Produce, which was formerly part of Fenmarc.

Meanwhile, Asda has launched a revival plan aimed at revamping its larger stores, cutting prices, and shelving the expansion of internet click and collect services after recording its worst sales performance in its 50-year history, with Q2 sales falling by 4.7 per cent year on year. Asda has also poached one of Sainsbury’s top executives for the role of chief operating officer. Roger Burnley, ex-retail and operations director at Sainbsury’s, previously worked alongside Asda CEO Andy Clarke at Asda between 1996 and 2002 as supply chain director.

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