Authentic Food Company’s profits double

FOOD manufacturer the Authentic Food Company has nearly doubled its profits but believes that trading will be tough next year.

The Stockport-based manufacturer of British, Eastern, Mediterranean as well as Indian food supplies pubs, restaurants, hotels and other caterers as well as making ready meals for retailers.

In the year to May 31 2009 its like-for-like sales rose from £30.4m to £33m.

Over the same period, its profits after tax increased from £694,685 to £1,240,593 – mainly due to it reducing the net cost of its sales.

The directors have also recommended a dividend of £50,000 – which contrasts with last year’s results when they paid £350,000.

Last month, TheBusinessDesk reported that the company’s founder, Lak Basran, had stepped down after a multi-million pound refinancing deal saw his son Nik take the helm.

The undisclosed refinancing comprised of funding from RBS Corporate Banking, Lombard and RBS Invoice Finance.
 
The company – which has increased its employees from 216 to 228 over the past year – now runs sites in Sharston, Manchester and Stockport.

It remains concerned that the weakness of sterling and its effect on the cost of raw materials will impact on sales.

The Directors’ report states: “The group and company have identified the overall weakness in the UK economy as a risk to business over the next 12 months.

“The business will continue to market positively to generate sales growth in a time of weaker demand.

“The group has identified the potential weakness of sterling and its impact on the cost of raw materials as a risk to the business in the medium term.

“It continues to monitor forward exchange rates closely, alongside developing new sources of raw materials on a global basis.”

The company was founded by Lak Basran with his wife Kamal in 1985.