Fletchers rising to occasion with land sale
BAKERY group Fletchers has completed a multi-million pound land sale which will allow the company to make improvements to the way it operates.
The deal, which has seen three acres of brownfield land adjacent to Fletchers’s site in Wadsley Bridge sold to Sainsbury’s, will enable the Sheffield-based company to reconfigure its plant and move existing production lines to create a new production and despatch facility.
A car parking area will also be created following the deal with Sainsbury’s, which has planning permission for a new superstore serving the North of Sheffield.
Fletchers Group has seen its fortunes improve since a new management team was brought in during 2007 to help turnaround the 117-year-old business.
Stephen Holding, managing director of the Fletchers Group of Bakeries, said: “The completion of the land sale at Claywheels Lane will provide a cash injection which is earmarked for a significant upgrade to the site and pave the way for business growth.
“Fletchers Group will re-invest proceeds from the land sale directly into its Sheffield operations, helping to provide consistent employment for more than 350 staff and facilitate improved technical standards and production efficiencies, which are crucial in the demanding food manufacturing environment.”
Fletchers Group was devastated by a fire in 2006 which destroyed 40% of the production capacity at Claywheels Lane.
However, improved trading has seen an operating loss of almost £10m recorded five years ago transformed into an operating profit of almost £500,000 in this financial year.
Mr Holding added: “The project to invest the land sale funds has started almost immediately and will take approximately 12 months to restructure the plant, modify existing buildings, landscape the grounds and surface a brand new car parking area.”
The company invested more than £3m last year, including a new plant at its Sheffield site, to make English muffins, a significant growth area for the business.
Fletchers Group incorporates three other brands: Manchester-based Kara, London’s Grain D’Or and LBD in Barnsley.
Two-thirds of turnover comes from customers including Sainsbury’s, Tesco and Marks & Spencer.
