Higher costs squeeze Greenhalgh’s

HIGHER revenues at North West bakery chain Greenhalgh’s were wiped out by increasing costs last year.

The Bolton company has a bakery in Lostock, 60 shops across the region and employs 900 people.

According to recently-filed accounts, it registered a 5% increase in sales to £25.1m in the year to January but costs rose to £25.9m leaving an operating loss of £808,000.

An exceptional gain of £718,098 during the year was reported after the administrators of collapsed Icelandic bank Kaupthing, Singer & Friedlander, refunded more money.

Greenhalgh’s had £6.5m on deposit with the bank when it collapsed in October 2008 and has now clawed back nearly £5m.

The refund and interest payments of £145,000 helped the company report a small profit of £43,855, up from £24,000 last time.

The company, owned by various members of the Smart family, closed the year with assets of £5.8m and shareholders’ funds of £16.6m.