Investment hits profits as Boutinot’s sales rise

BOUTINOT, the privately-owned wine importer, producer and supplier said investment in people and its new French vineyard had dented annual profits.

The Gatley, Stockport, based company said sales had grown 13% or £9.9m to £85.2m in the year to the end of August 2011.

Profits which more than doubled to £3.8m in the previous year, fell back to £2.3m as administrative expenses rose by £1m.

Newly-filed accounts for Boutinot, named after its founder and chairman Paul Boutinot, show the business increased its staff numbers by more than 80, from 145 to 226, which pushed the wage bill up by £700,000 to £4.9m.

Sales grew in all locations – with the UK – its largest market, rising form £63.6m to £73.5m. Boutinot supplies the likes of Tesco, Sainsbury’s and M&S as well as independent wine merchants and restaurant groups.

In their review of the year the directors said: “2011 like 2010 was a year of investment by the company. The most significant investment was in its people with the recruitment of new colleagues both to the company’s sales and customer service teams.

“Amongst the other investment initiatives the company also proceeded with the second phase of its refurbishment of the wine cellar on its vineyard in the Rhone.”

This included the installation of bespoke French oak, open-top fermenters, which were installed in time for the 2011 harvest.

There was also investment during the year in the main company website boutinot.com, while individual websites for particular wines and market sectors were also added.

As well as France, Boutinot has businesses in the US and South Africa and a joint venture in Italy.

Founded in 1980 by Mr Boutinot, the business was set up to source wines for his parents’ restaurant in Heald Green. It now has a portfolio of more than 800 wines.

The company said the investment over the past year would support future growth of business. Directors said the 2012 financial year had got off to a good start with strong sales in the run-up to last Christmas.

Dividends of £300,762 was paid during the year, down from £960,000 in 2010. Net assets at the end of August 2011 were £11.3m compared with £10m the year before.