More dough for Warburtons as sales rise above £500m
BOLTON baker Warburtons made significant gains last year, pushing revenues above £500m in a tough market.
According to Warburtons Holdings’ newly-filed accounts for the 53 weeks to September 29, pre-tax profits were £26.5m (2011: £16.3m) on sales of £523.7m (2011: £499.6m).
Profits were helped by lower finance charges – £2.4m compared to £10m – and the comparative period for 2011 covered a 52-week period.
The figures also show that former managing director Robert Higginson, who departed in May 2012, received a £834,000 pay-off. At the time the company said he left to pursue other interests, and these now include working with Amin Amiri at a2e Venture Catalysts.
The family-owned company appointed former Pepsico executive Neil Campbell as its new managing director in March. That month it also agreed a new five-year banking facility.
In their report the directors said: “The Warburtons business has continued to focus on the quality of product and service in order to maintain differentiation in what continues to be a very competitive market.
“In the period under review trading performance has improved despite the continuation of difficult trading conditions and bakery market decline. The retained profit for the 53-week period has again been impacted by exceptional items. This is related to the continuing review of capacity for our core product range.”
In January 2012 the company closed a bakery in Oldham with the loss of 73 jobs, and since the year end it has shut its facility in Blackpool which employed 55. The Blackpool charges incurred an exceptional cost of £1.2m, while Oldham cost £2.8m, although this was charged to the prior year.
The directors added: “The main focus of the business remains on growing share of the bakery market in Great Britain. It is recognised that this can only be achieved by developing new product ranges alongside our current market leading lines.
“Sales of wraps, sandwich thins and gluten free products have all progressed well in the year, a result of investment in plant capability over the previous two years.”
During the year the company employed an average of 4,546 staff, down from 4,659. Warburtons paid dividends of £5.5m, up from £4.3m, and made charitable donations of £260,000.
The company could not be reached for comment.
