Director Tony Hewitt said in the strategic report that revenue for the year fell from £8.9m to £7.8m and the loss before tax increased to £1.5m (£0.4m). The nursery grows 18m plants a year and includes the Merediths, Coblands and Mahood businesses.
Hewitt added: "It became clear before the start of the year that the horticulture business was facing significant challenges and a major reorganisation of the business was initiated in September. A new senior management team has been established including the appointment of a new managing director who will lead the business with myself."
There is a new IT system which Hewitt said will help control planning and costs.
He said further losses are expected in the short term, "mainly as a result of the high fixed cost base associated with the number of nurseries the company operates from".
There is a nursery consolidation plan to move to single modern facility in the Midlands.
Former managing director Andrew Bennett left in September 2016 and his successor Laurence Scowen has also left, as has production manager Andrew Gretton. Sales director Steve Derbyshire and Coblands’ Lewis Normand have also both left. Munya Verenga is new production manager.