Higher commodity prices knock Duerrs’ profits
FAMILY-owned Manchester preserves company Duerr’s saw higher raw material costs dent its bottom line last year.
According to newly-filed accounts, turnover rose 10% to £59m in the 12 months to the end of March, but this reflected higher selling prices due to rising raw material costs.
The gross margin was squeezed from 12.9% to 9.8%, contributing to lower pre-tax profits which nearly halved to £1.2m.
In their report the directors said: “The increase has resulted from increased selling prices following a period of intense upward pressure in raw material prices reflecting the worldwide increase and volatility of commodity prices.
“However, as can be seen from the reduction in gross margin to 9.8% we have, as anticipated, experienced delays in passing on these cost increases to our customers.”
The accounts show total borrowings of £6.7m. Since the year end the company has completed the renegotiation of its banking facilities. Duerr’s employs 229 staff.
Meanwhile, the firm has appointed its first non-executive to the board, industry veteran Clive Sharpe.
Mr Sharpe has 33 years of food manufacturing experience, covering branded and private label products, and has previously been chief executive of Golden Wonder and WT Foods, chairman of Largo Foods (Ireland) and also chairman of Burtons Biscuits.
He is currently chairman of Quorn Foods and Peters Foods, and a non-executive director at Blackpool-based Tangerine Confectionery.
Duerr’s said he will “open new doors” in the breakfast and homebaking markets and develop and implement annual and strategic plans to achieve sales and profit targets.
