Produce World has said it is well placed to grow over the next few years despite a drop in sales and profits reported in its annual accounts this week.
The 12-month period to 2 July 2010 saw pre-tax profits fall from £4.6 million in 2008-09 to £1.3m in 2009-10. Turnover dropped from £226m to £218m.
Group ceo William Burgess said: “We were naturally disappointed that our sales growth fell off during the past year, and that operating profits were down at £2.3 million, compared to £7.2m in the previous year. However, given the costs of re-structuring and the massive crop write-offs that we had to make, following the longest period of freezing weather in living memory, it is not surprising.
“Over the long[er] term we have seen massive growth in the group, and we are confident that this will continue in the future.”
Burgess added that during the past year the company fully integrated the brassica business, which was previously part of Marshalls, and has examined “the best structure to deliver outstanding service to our customers such as major retailers and foodservice companies.”
He continued: “The new team includes dedicated account directors for all our major customers, which will make us more able to respond to their needs, and to grow together in the future. We have also put in place a dedicated group marketing team to ensure that we benefit fully from initiatives such as the rebranding of the group, and the recently signed fresh produce licensing deal with Green Giant Fresh.”
“When you put these initiatives alongside the £15million investment we are making in our potato business, increasing storage capacity and improving our processes, and improving the cool chain in our brassica business, you can see that we are in excellent health to target continued growth in 2011 and beyond.”
Earlier this year, the group appointed Neil Fraser as chairman and Bob Moody as group chief operating officer. Moody has a background in international sourcing for very large, multinational businesses. He will be responsible for the further development of the group’s factories and supply chain.
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