Kettle Produce has made a glowing return to profit and pushed its turnover back over the £100 million mark.
A bumper harvest has resulted in one of the strongest performances in recent years by the firm, a major supplier to UK supermarkets.
In the year to 30 May 2015, the Fife-based business saw turnover rise by five per cent to £100.9m, coupled with a pre-tax profit of £2.1m.
This was up from a £96.1m turnover in the year to 31 May 2014, when the company posted a £1.2m loss, in a period hampered by reduced sales volumes and sales price deflation.
Company financial director Liz Waugh said in the report accompanying the latest set of accounts – held at Companies House – that favourable growing conditions had led to higher than expected yields, which allowed the company to capitalise on sales to non-traditional markets.
This included selling surplus crops to new distribution networks the company has been developing in the UK and overseas. She added: “All areas of the business have contributed to deliver this positive year-end performance, helping enhance our turnover and profitability.
“The quality of raw material was also better than anticipated supporting improved production flow, which reduced our operational costs.”
As a result of the strong trading performance, the go-ahead has been given for previously postponed investments, which include scheduled planned replacement and modification of business assets.
Reflecting on the period following the business’ latest set of accounts, Waugh said: “Although we’ve experienced a cool spring and summer resulting in slow crop growth, trading is in line with target, and we anticipate this will continue for the remainder of the financial year.”
Created by two Scottish farming families in the 1970s, Kettle Produce remains family-owned, and is one of Fife’s largest employers, with an average monthly staff of 934.
The business produces 100,000 tonnes of fresh root and green vegetables and salad crops each year from its two Scottish production sites.
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