Capespan’s UK business has returned to profit in a tough trading environment after a restructure of the business.

Capespan reported a significant improvement from a pre-tax loss of £1.3 million in the year to 3 January 2009 to a profit of £326,000 in the 53 weeks to 3 January 2010. Turnover fell from £107.7m in the previous period to £98.5m.

The business, now called Capespan International Ltd, sold off Capespan Continent NV to its immediate parent company Capespan International Holdings Ltd in December 2008.

Capespan trading director Martin Dunnett said: “We had a better trading year with the customers we were working with, it’s a modest profit but it’s a profit and our turnover held at a reasonable level in 2009. We had a lot of cost containment projects internally which resulted in greater operational efficiency.”

Dunnett said the company is well placed to capitalise on a market that is moving towards direct sourcing, playing to Capespan’s strengths in category management, logistics and straightforward handling.

He praised the skills base and flexibility of the company’s facilities. He also said the firm’s international division’s procurement in various sources - including being the largest importer of Chilean grapes into Europe - had put it in a good position.

Alistair Phillipson, head of corporate affairs, added: “Traditional procurement and importing businesses are

re-evaluating their role in the supply chain.”

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