Continued investment in consolidating the supply chain has led to a dip in profit for one of the UK’s leading soft-fruit firms.
Winterwood Farms saw its pre-tax profit drop from £837,532 in the year ending 2012-13, to £18,097 in the year ending 31 March 2014.
Turnover for the year was up from £31.2 million to £32.1m.
The Kent-based firm’s MD, Stephen Taylor, said that multi-million-pound investment in farming operations in South Africa with rand-denominated loans has played a key part in shaping Winterwood’s present financial situation.
He said: “At the end of the year the accountants take the rand rate on 31 March, and work out the GBP that will be repaid. As the Rand weakens each year, this generates a paper loss, but also reduces UK tax, so it’s not something we’re too concerned about.
'Trading profit was strong in 2013-14, and as 31 March has come round again, I can also report that 2014-15 was even better than 2013-14.”
He added: “We have found that investing in farming operations abroad secures the future of the UK base, together with its employees, as we can grow products anywhere we want to on earth in order to satisfy a market requirement.
'This makes us more flexible than our competitors, and also gives our staff true all-year-round (AYR) employment – we are one of a very few packhouses that doesn’t use agency staff, for example, as we have a true AYR business, and therefore can offer full-time work to people.”
In the report accompanying the 2013-14 accounts, Taylor said Winterwood is aiming to reduce the packagaing weight used per kg sold, and will look to achieve this by boosting investment in top-sealers. IT is another area where funding has been set aside to bolster growth.
Taylor also noted in the report difficulties Winterwood had experienced in boosting the number of tunnels it has at Winterwood Farm itself due to neighbour objections.
At the nearby Haven Farm site, Taylor reported, raspberries have been “good-quality”, while gooseberry production is earmarked to rise in the medium-term.
