McCambridge reaps rewards from closures and investment
MCCAMBRIDGE, the baker which shut down two North West factories earlier this year as it consolidated the business, halved pre-tax losses in the 12 months to June and recorded a 31% jump in sales.
In newly-filed accounts chief executive Neil Fraser heralded a “truly remarkable year” in which the company strengthened its management team and transformed its manufacturing base.
As part of that transformation around 100 jobs were lost at the Lisa Bakery in Oldham, which made mini rolls, and the William Lusty factory in Heywood. But it also invested £4.4m at Blackburn, where the group is based, and £2m at Trafford Park, Manchester where it makes Soreen. It now employs 1,330 people.
McCambridge, which bought Blackburn’s Inter Link Foods for £47m three years ago, says the changes were essential, allowing it to save money by operating from fewer, more cost-effective sites.
Sales at the business rose 31% to £122m while pre-tax losses were slashed from £8.3m to £4.7m. The business saw a sharp rise in earnings before interest, tax, depreciation and amortisation – up 252% to £8.8m.
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In his report Mr Fraser says this latter figure reflects the combination of greater efficiencies and investment in new plant and machinery. The changes at McCambridge were financed by a deal struck with Barclays in July 2009 which saw it convert £31.9m of debt into shares in the business.
The company says it in good shape but recognises the outlook remains challenging. Finance director Mark Devine said: “We have seen a significant resurgence in commodity cost inflation in recent months. Competition within a weak market place has intensified both as own label manufacturers seek to grow volume and branded manufacturers increase promotional activity to grow volume at the expense of own label product.”
