Despite making a gross profit from sales of £964,000, the business faced a £31.7m loss from operations and finance expenses of £6.3m.
Meanwhile, revenue was down from £33.7m in 2022 to £25.3m in 2023.
Typhoo said that its 2023 results are “dominated” by exceptional costs of £24.1m (part of the £31.7m figure), a portion of which is associated with one-off costs related to its transformation plan which was “necessary to address the significant legacy and structural issues faced by the company”.
While costly, Typhoo said that significant progress was made in the delivery of this transformation plan during the year.
This plan included a refocusing on value accretive and profitable lines, with the production of marginal and loss-making lines such as own-label products discontinued.
The year in question also included an incident that saw equipment at Typhoo’s Moreton facility in the Wirral damaged, which delayed the sale of the site until June 2024 (plans to sell the site and cut jobs were announced in March 2023). Since the end of its 2023 fiscal year, the firm has received £4.3m from insurers.
'Typhoo brand has been repositioned'
“The business has made robust progress on its transformational objectives,” Typhoo’s future strategy statement read.
“Subsequent to year-end it continued to reduce its fixed cost base; has launched a new product; repositioned the Typhoo brand; and upgraded key machinery and processes to improve operational efficiency.
“Customer service levels have improved since the disruption in 2023 and with investment in a new ERP system combined with the simplified operational model, the business is well placed to ensure customers are well supported and the supply chain more optimised and efficient.”
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