Sales rise as profits fall at KTC Edibles

Turnover for the company rose 13% to £267.9m last year from £233m for the same period in 2016. KTC attributed the growth to an increase in volumes.

However, a number of costs pushed down the profit for the company last year – including staff costs (up 7% to £7.2m) and raw materials (up 14% to £231.5m). That resulted in operating profit dipping 8% to £4.2m.  Profit after tax was £2.96m, down from £3.2m.

‘Continue to be mindful’​

Commentating on raw material costs, KTC’s full-year financial statement said: “Directors continue to be mindful of the current economic climate and exercise a prime focus on the uncertainty in the energy prices and currency due to considerable unrest in many regions of the world, bringing added volatility to commodity prices.​

“The directors are actively monitoring costs and overheads and are confident that the company’s trading results and profit for 2018 will be in line with positive forecast projections.”​

Interim dividends of £2.61p per share were paid to ordinary shareholders during the year, up from £1.94p in 2016. The directors did not recommend payment of a final dividend.

No significant Brexit impact​

The statement added: “Since the company deals essential food product, the directors believe that there is not likely to be significant impact of indirect tax in the coming years due to Brexit.”​

Founded in 1972, KTC Edibles supplies more than 250m litres of cooking oils to all sectors of the food industry and employs 275 people across its two sites in Wednesbury and Liverpool. Its range of world foods products are available in retailers and wholesalers worldwide.  

In February, the company secured £40m in funding from Lloyds Bank commercial banking, which it planned to use to accelerate its growth, including in overseas markets.