Potato supplier Branston has warned it will be difficult to achieve a repeat performance after an impressive rise in profitability.
The company last week reported a 39 per cent increase in pre-tax profits to £11.5 million for the 12 months to 25 July 2010. Turnover was £108m, down slightly from £109.7m the previous year as a result of low potato prices.
Following the positive results the company has paid a dividend of £10.1m - only the sixth time since 1968 the group has paid a dividend. Some 75 per cent of that figure has been lent back to the company.
But managing director Graeme Beattie told FPJ the figures were exceptional. “Last year one or two factors conspired to produce these results,” he cautioned.
“We operate in a very volatile market and so our results do not go up in a linear fashion year on year. Very, very low potato prices at the farm gate benefited us last year, which will not benefit us this year,” he said.
Other highlights for the Tesco supplier included an upturn in operating profit of 41 per cent to £11.5m.
Beattie admitted that figures for the year to 2011 will look different given a greater supply of UK potatoes in the marketplace putting downward pressure on prices as well as spiralling costs.
“The results last year were exceptionally good,” he continued. “This year will be nothing like that. There has been so much inflation this year - the cost of inputs has more than doubled.”
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