Samworth reveals moves to boost profits

The company told Food Manufacture that “various steps to reposition the business​” had been taken following the release of its full year results this week.

The firm reported a drop in profit before tax of £800,000 to £19m, for the period ending December 29, 2018, although this excludes non-recurring costs of £18.2m. Samworth had posted a profit of £25.3m in 2017.

The costs were mainly related to write downs of the firm’s Kensey Foods business in Cornwall and the closure of its Brooklands Bakery business, a spokesperson told Food Manufacture.

Re-shape the business​

“A number of actions have been taken to reshape the business​,” they said.  “This includes the purchase of the Manton Wood food-to-go site in early 2019 and investment in the Higgidy brand, plus our exit from desserts including the closure of Kensey Foods and sale of Blueberry Foods.​

 “While market conditions continue to be testing, the business is now performing better in terms of sales, profit and cash generation and we remain confident about the future​.”

The Manton Wood acquisition​ took place in October last year, in a deal with 2 Sisters Food Group.