Karro Foods in the black for the first time in "many years"

PORK suppliers the Karro Food Group have managed to turn their fortunes around, and are now in the black for the first time in “many years”.

The company, which employs 3,000 people in the UK, has reported annual sales of £528m for the year to December 31 2014, down on the year before when turnover reached £533m.

But Karro has also posted EBITDA of £8.0m, compared to a loss of £3.3m the previous year.

This was the first profit the firm has made for several years and is the second consecutive year of EBITDA improvement of more than £10m.

Earlier this year the Malton-based food company secured a £74m funding package from RBS Invoice Finance and GE Capital, and is currently investing £10m in its facilities, including a major factory in Northern Ireland.

Di Walker, executive chairwoman of Karro Food Group, said: “Following its acquisition from VION by private equity house Endless LLP in January 2013, Karro Food Group implemented a five year plan to transform the underlying performance of our business through operational improvements that could deliver value to both Karro and its customers.

“This is an achievement reflected in these stand-out results and a clear recognition from our customers that the revitalised group is a very welcome market participant.

“Our firm focus moving forward is to continue this positive trajectory. We have an appetite to make acquisitions and this strategy will be supported by our recently announced £74m funding package.

“We also continue to be focused on organic growth and will further develop our retail and trade partnerships, as well as expand our international customer network in markets including Australia, China, Japan, Korea and the United States.”

Chief financial officer Michael Kestemont said that the second year of Karro’s profit growth had been realised in a year characterised by significant competitive pressure within the UK pork industry.

He added: “The increasing success of Karro Food Group and its strong financial performance is giving both suppliers and customers the confidence to want to grow long-term strategic partnerships with the group, cementing our position as a leading player in the UK and international pork industry.”