Authentic Food Company reports 15% profits hike

19-Feb-2013 - Last updated on 19-Feb-2013 at 11:40 GMT

Authentic Food said it expected to achieve revenue of £50M this year

The Authentic Food Company has reported a 10% rise in sales and a 15% hike in profits in its latest financial report.

The Manchester-based supplier of Indian, Chinese and international foods to the foodservice and retail industry reported turnover up by 10% to £39.6M for the 12 months to May 31 2012. Pre-tax profits were up 15% to £2.38M during the same period.

The directors stated in a report, filed last week at Companies House, that turnover had risen due to continued growth in new customers and the introduction of new product ranges into existing customers.

Nearly all sales came from the UK, but revenue from the EU sales rose by 65% to £263,224.

Started with a £5,000 bank loan

The Authentic Food Company was founded in 1985 by Lak and Kamal Basran with a £5,000 bank loan and now employs more than 220 people.

It said in July 2012 that it had invested £2M across its sites in Stockport and Sharston, to increase production capacity due to recent significant business wins.

Much of the new capacity had been created following the win of new major contracts with Asda as well as several leading retailers in Europe, it said.

Authentic Food said it expected to post revenue of £50M this year.