Profit and turnover wilt at flower group
JZ Flowers, the East Yorkshire-based flower company, has seen its turnover and profit drop in a year it lost a £14m annual contract.
The firm, based in Newport, has filed accounts for the year ended 31 December 2018. Its turnover has fallen to £114m, down from £124m in the previous year, because it missed out on a three year contract to supply “core range lines” that contributed £14m annually.
Its pre -tax profits dipped by £1m; dropping to £4m from £5m in 2017.
However, JZ Flowers, which earlier this year announced a ten-year plan to amalgamate its three other sites at one expanded depot, said it secured a five year contract with its largest customer during the year, as well as a three-year contract for seasonal products to its second largest customer.
JZ Flowers and sister company Intergreen together process over 12 million stems of flowers per week and employ more than 750 people. JZ Flowers is the sole supplier to all of Aldi’s national outlets, whereas Intergreen distributes bouquets solely for Tesco.
The company added: “The group has supported its customers in undertaking competitive product pricing within the marketplace, but with the weakening pound, the significant volatility in the currency market and the risks and uncertainties surrounding Brexit the group’s customers growth remained stagnant during the year.”
JZ Flowers also saw a drop in its waste recycling figures, falling to87% from 96%. It said the amount of material recycled had fallen due to the collapse in the market for mixed plastics.
