Tyrrells slips into the red

The company made an operating loss of £37m, down from a profit of £4.7m reported in Tyrrells’ 2016 full-year results.

Tyrrells said the loss reflected the potential £43.15m that could be owed to debtors, following a review of the company’s debts and their recoverability. The manufacturer guaranteed that there was no cash impact of these actions.

In the report, Tyrrells said: “It its worth noting that, on consolidation of the Tyrrells Group of companies by its ultimate parent company, these intercompany balances are eliminated and the effect on the consolidated balance sheet and profit and loss is nil.”​

Financial support​

Should any financial difficulty arise due to this reported loss, the Intersnack group – the ultimate parent company at the date of signing these financial statements – said it would provide financial support, if required, to enable the company to continue in operational existence for the foreseeable future by meeting its liabilities.

KP Snacks chief executive Mark Thorpe added: “Some large, historical one-off accounting items did impact the profit and loss figures. However these relate to unwinding previous inter-company structures that pre-date the current management teams and do not reflect the underlying performance of the brand. ​

“We are underway on our work to integrate Tyrrells and making positive progress with customers on the role the brand can play.”​

Sales for the company fell 1% in 2017 to £63m compared with a similar 39-week period ending 31 December 2016, with sales in the UK accounting for £49.7m. Sales in Europe were £10.9m, while sales for the rest of the world were worth £2.27m.

Tyrrells has been through two acquisitions since the reported period in its 2017 full-year results.

Deal worth $1.6bn​

In December last year, the crisp-maker was bought by US confectionery giant Hershey​​ in a deal worth $1.6bn (£1.2bn), as part of its acquisition of Amplify Snack Brands.

It was then bought from Hershey just six months later by KP Snacks​​ for an undisclosed sum. KP owner Intersnack said the acquisition was a strategic fit for the company and strengthened its market coverage in the UK and France.

Meanwhile, snacks and drinks giant PepsiCo has revealed its intention to acquire premium crisp brand Pipers​​ for an undisclosed sum, subject to approval by the Competition and Markets Authority.