Alan Bartlett & Sons has posted a loss for the fourth year in succession, but insists the company remains in a strong financial position.
While the roots business has managed to reduce its pre-tax loss from £161,126 to £83,450 for the year ending 31 May 2014, it follows on from a loss of £48,928 in the 2011-12 financial year, and a £2.6 million pre-tax loss in the financial year ending 31 May, 2011.
Turnover for the most recent financial year, meanwhile, was down from £39.7m to £36m.
Andrew Foster, finance director at Alan Bartlett & Sons, said: “While trading losses averaging £98k during the three years ended 31 May 2012 to 2014 were disappointing, the underlying performance of the company remains strong.
“The company’s recent results were adversely affected by depreciation and goodwill amortisation charges, which averaged over £2.5m during each of the three years to 31 May 2014. These charges were a direct result of the purchase of our Scottish facility and investments in market-leading process innovation and cost-savings initiatives, which have secured our financial position and improved our prospects for future profitability.
“The company’s EBITDA [Earnings Before Interest, Tax, Depreciation and Amortisation] performance was strong during this time and has remained so during the current financial year.”
Speaking in the statement accompanying the accounts to 31 May 2014, company secretary Pamela Bartlett said: “The current year’s trading results have been disappointing compared to budgets. Turnover for the year had decreased, due, once again, to the warmer weather experienced during the year plus a reduction in sales volume to Tesco supermarkets translating into less footfall through its roots section.
“Sales to other customers have held up well during the year, and turnover with Tesco has increased towards the end of the year following the group’s category management role, which commenced in late February 2014. The company has again reduced the number of acres grown from 3,164 to 2,892.”
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