Potato supplier Greenvale AP has increased its profits threefold despite turnover falling in a “highly competitive market”.
The business saw an increase in pre-tax profits to £8.7 million in the year to 26 June 2010 from £2.5m the year before. Turnover decreased from £172.5m in 2009 to £156.6m in the 2010 period, according to accounts released to Companies House.
In its directors’ report, the firm said the overall volumes of potatoes sold had remained flat but a decrease in fresh retail had been offset by an increase in other lower priced volume offers.
Operating profits rose from £8.1m in 2009 to £9m the following year while staffing numbers increased slightly from 815 to 825 across the business’ production, warehouse, management and administration areas.
Yields going through its three main fresh sites showed an improvement of more than 3.3 per cent while man hours per tonne showed an improvement of more than four per cent.
Greenvale finance director Brian Macdonald told FPJ that market conditions were “as normal… very tough but generally very fair”.
He attributed the firm’s success to the business “working together to drive efficiency, find better ways of doing things and deliver great customer service”.
Macdonald said: “As a result of the recession, there has been a significant increase in all customers’ focus on value and price. We believe that this will continue during these challenging times but as the economy improves we would expect the market to return to previous trends.”
The directors added: “We maintain a constant programme of innovation within our product range as well as formal and regular new product development meetings with all of ours customers in order to retain our current position of preferred supplier.
“The company’s performance depends largely on its regional managers and local staff. The loss of key individuals or the inability to recruit people with the right level of experince and skills locally could adversely impact the company’s results.”
The company is due to report its interim financial results at the end of March.
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