Jam maker Duerr’s year of sweet success

FAMILY-owned, independent preserve manufacturer F Duerr & Sons has reported a leap in sales and profits on the back of achieving higher selling prices, despite the competitive market place.
 
The Manchester company, which makes honey, jams, peanut butter, condiments such as cranberry and apple sauce and mincemeat, saw turnover increase 9.3% in the year to the end of March to £64.6m. In volume terms its tonnage volumes were up 7% on the previous year.
 
Underlying profits. before interest and dirctors’ commission were up 33% from £1.689m to £2,243m.
 
The fifth generation of the Duerr family, brothers Mark (managing director) and Richard (sales and marketing director) now run the Wythenshawe-based company, which was founded by Frederick Duerr in Heywood near Bury in 1881.

In their business review Duerr’s directors said that despite the increased selling prices there was disappointment that gross margins had increased marginally, from 9.8% to 10.2%, which they said reflects “the competitive market place” in which the business operates.

Improved profitability and stock management saw the business return to positive cash flow of £5.2m, compared  with an outflow of £86,210 in 2012. The company,  which has around 240 staff, also paid down a considerable amount of its borrowings during the year.

Net debt at year end fell from £6.7m to £2.7m, while net assets at March 31 were £1m ahead at £14.5m.

Looking ahead the directors state their belief that despite the prevailing market conditions they believe the company’s prospects are “satisfactory”.