Owner of Shropshire pie maker Palethorpes reports jump in turnover
The owner of Shropshire pie giant Palethorpes delivered a jump in revenues and earnings, newly-published accounts have revealed.
Addo Food Group, the incarnation of what was the Market Drayton-based Palethorpes producer Pork Farms, clocked up turnover of about £270.9 million, and pre-tax profit of £786,000, for the year ending March 25, 2017.
That reflected a big improvement on the previous year’s figures, when revenue came in at £236.4 million and pre-tax loss of £233,000.
In a statement accompanying the accounts, Addo secretary Graham Rutter said: "The group's main customers are the UK's leading supermarkets and retailers. The strength of these customers, combine with competitive pressure in the industry, representing continuing risks that could result in lost sales to key competitors.
"The group seeks to manage the risks presented by its consolidated customer base, and the competitive supply-side environment that characterises the industry, through a strategy of pursing a competitive high standard of service and quality and a low cost model targeted across a portfolio of categories where it has a good market positions.
"Sales with supermarkets and consumer demand are inherently uncertain and a fall in demand may result in the group requiring additional funding.
“The group will continue to grow volume and profitability through innovation, customer service, product quality and continued investment in its assets."
The accounts are one of several to be published since a restructure of Addo following the acquisition of two sites and the chilled savoury pastry business of Kerry Foods.
As part of the rebranding programme, the group’s Market Drayton-based Palethorpes site became Palethorpes Bakery, part of the Addo Food Group.
The acquisition was in 2014, but the name was changed in September 2015.
The Palethorpes Bakery produces 115 million products every year, including 55 million sausage rolls and 35 million hot eating pies. It has just emerged from one of its busiest periods of the year, as it ramped up operations to meet the public appetite for pastry products over the Christmas period.
At the time of the rebranding of the company, bosses said Addo would use the strength in its brands to continue to drive category growth and introduce new consumers to its products.
Well-known Shropshire farmer quits dairy industry due to 'unsustainable' milk prices and Covid crisis