Record profit for Meadow Foods

MEADOW Foods, the independent dairy group, achieved a record profit last year despite challenging conditions.

In newly-filed accounts for the year to the end of March, the group said pre-tax profits rose 4.5% to £9.2m on sales of £340m, up 13%.

Meadow is headquartered at its creamery in Chester and has production sites at Holme-on-Spalding Moor in Yorkshire and Peterborough.

In their report the directors said: “It has been a very challenging year for diary-based food ingredients with firm milk and sugar prices throughout the year, but record volatility in other raw material prices, particularly fresh sweet cream.

“Despite this market, the group has delivered increased turnover and gross profit, and coupled with the continued close control on costs, an increase in operating profit.

“Group pre-tax profit increased from £8.8m to a record £9.26m, which after capital expenditure, taxation and dividends has resulted in a positive cashflow of £5.04m.”

They added: “We have a clear strategy for long-term future growth. By working closely with the farming community we are continuing to grow our milk field and offer competitive milk supply contracts.

“This combined with ongoing investment in our processing facilities and unrivalled market knowledge, means we can offer our customers secure supplies in a dynamic and ever-changing market.”

A dividend of £3.1m at 19.8p a share has been approved and £1.1m was paid in the year. The business is controlled by director Simon Chantler, who owns 50.5% of the shares. Meadow employed 258 people during the year.

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