Suppliers' profits dip despite higher turnover

Two potato suppliers have reported higher turnover but a fall in profits in the wake of the difficult 2012 season.

According to accounts filed at Companies House, East Anglian potato and vegetable grower co-operative Fenmarc saw pre-tax profits fall to £1.9m for the year to the end of June 2013, down 32 per cent, even though turnover was up 13 per cent to just short of £100m.

Managing director Richard Anderson ascribed the rise in turnover to "some new business success with existing and new customers and a year of inflationary pricing". He added: "The directors are satisfied with the result for the year considering the difficult inflationary conditions experienced."

Similarly, family-owned potato supplier E Park & Sons, which operates in several parts of the UK, filed accounts showing a 14 per cent fall in pre-tax profit to £1.2m for the same period, even as the firm's turnover jumped by 46 per cent to just short of £50m.

The accounts ascribed the rise to higher sales prices, helped by a volume increase of 19 per cent.

The poor 2012 harvest had obliged the firm to top up with imports from the continent "at a higher cost per tonne and associated delivery costs" that it had been unable to pass on to retailers, the accounts added.


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