Tangerine sweet on new investment
TANGERINE Confectionery, the Lancashire firm behind Butterkist popcorn and Barratts wine gums, is seeking further investment to fund the next stage of its growth ahead of a potential Stock Market listing.
Chairman Steven Joseph told TheBusinessDesk.com that Tangerine, which is currently backed by Growth Capital Partners, is at an “early stage” in the process, but has appointed investment bank NM Rothschild to advise it.
He said: “The business has seen strong growth as we have built the business organically and by acquisition over the last few years.
“Eventually we’d like to list the business, and it’s something we thought about now, but we feel we need to be much bigger – probably twice the size we are now- before we do this.
“We’ll look at a range of options with Rothschilds, including a secondary buyout.”
The process is likely to take around six months, he added.
Newly-filed 2009 accounts for Blackpool-based Tangerine, which also makes own-label sweets for the multiple retailers, show sales growing from £131m to £154.5m, while pre-exceptional operating profits more than doubled from £4m to £8.6m.
Mr Joseph “We are looking to find a partner who’ll be able to invest further in the business to allow us to grow. We have a couple of internal projects which we’d like to invest in, plus we wouldn’t want to take on more debt if we wanted to do an acquisition too.”
Highlights of the past year include the launch of the Henry Goode brand of soft eating liquorish, which is made in Pontefract, Yorkshire and is already generating
£5m in retail sales.
Other major developments included moving the manufacture of sherbet fountains to Pontefact, relocating the production of Fruit Salad and Black Jack sweets from Spain to Blackpool, and improvements and investments in the Liverpool-based marshmallow business to further enhance product quality and output.
A new Barratts product called Spogs, and aimed at the teenage market, has also been launched.
Asked about current trading Mr Joesph said: “We are doing OK there is obviously some hesitancy in the retail market. Everyone is holding their breath to see the impact of the government cuts and VAT increases. We’re three-quarters of the way through this year and will make steady progress profit-wise and also with sales.”
Tangerine, the country’s fourth-largest confectionery firm employs around 1,340 people, including 400 in Blackpool. It also has sites in Liverpool and four in Yorkshire, at York, Cleckheaton and two factories in Pontefract, as well as a plant at Poole in Dorset.
The business is currently 40% owned by Growth Capital Partners, 55% by the management team and 5% by the original shareholders.
