Published by Insider Media
HISTORIC FOOD GIANT RETURNS TO POSITIVE TRADING AFTER COVID-HIT YEAR
The historic food giant behind the likes of Ginsters pasties, Soreen malt loaf and West Cornwall Pasty Co slipped to a pre-tax loss during its latest financial year. However, the business said that its trading performance is now more positive.
Leicester-headquartered Samworth Brothers has posted a pre-tax loss of £11.1m for the year to 2 January 2021, down from a profit of £29.1m.
Total sales fell by 9.2 per cent from £996m to £905m over the same period.
The company can trace its roots back to the 1800s and also owns companies including Bradgate Bakery, Melton Foods, Walker & Son, Kettleby Foods, Saladworks, Walkers Deli & Sausage Co, The Cornwall Bakery, Revolution Kitchen and Dickinson & Morris. It is also a majority shareholder in Higgidy.
A statement from the business said: "Despite the significant impact the pandemic had on our business, we were able to preserve our cash position and continue to invest in our business.
"Capital investment in the year was £21.8m and we increased our ownership in Higgidy and acquired the Urban Eat brand. Our closing net debt remained modest at £42.6m and we maintained good headroom on our facility throughout the year.
"We committed a huge amount of effort and investment to keep our people safe during the pandemic. Covid costs in terms of additional infrastructure and other ongoing operational costs amounted to over £10m in the period March 2020 to June 2021 and these safeguards continue.
"In 2021, we have got back on track and our trading performance is now more positive. Food to go sales, that were so significantly impacted by the various lockdowns, have now returned to more normal levels and we are seeing positive trading in other parts of the business."