Halewood looks at new markets and products after profits slide

HIGHER costs, tough competition and adverse currency movements in its overseas businesses have dashed profits at Halewood International – the Liverpool alcoholic drinks manufacturer and distributor.

The privately-owned Huyton firm, which is behind leading brands including Lambrini and Crabbie’s Alcoholic Ginger Beer and which alao distributes Tsingtao Chinese Beer and Lamb’s Navy Rum, said profits in the year to the end of June 2013 had fallen from £15.1m to £6.7m.

Turnover in the year nudged ahead 1.3% to £275.8m, the 1,000-strong company said.

Chairman Judith Halewood, widow of founder John, who died in 2011, said the results were satisfactory in the context of the wider market conditions and had demonstrated the group is “adaptable, successful and resilient throughout the economic cycle.”

Net assets increased by 6.5% from £63.3M in 2012 to £67.4M for 2013.

Halewood also said the drop in profits was caused by declining sales volumes in the UK and overseas as well as a significant increase in costs associated with packaging waste.

The company in in the midst of a five-year plan aiming to deliver around one third of profits from exports and a similar figure from new product development.

Managing director Andy Smallman said, “Having had a strong year in 2012, we always knew 2013 was going to be tough. However we have a clear strategic focus to reduce our exposure to a UK market where long term sales are declining and have restructured our business to ensure we are configured for international growth underpinned by new product
development.

“The macro-economic environment remains extremely challenging with
increases in raw materials and energy costs showing no sign of slowing
down. At the same time consumer confidence, while improving, remains
fragile. This year has very much been one of re-grouping and restructuring to allow us to start driving growth in the years ahead.”

Mr Smallman added: “We recognise that meeting our ambitions for the business will be challenging, but I am confident we have a robust plan, a strong team and a tremendous product portfolio and these clearly provide a solid foundation on which we can grow the business.”