Operating profit rose 50 per cent at Boughey Distribution to £3m last year, parent NWF Group revealed in its annual results.
The focus has been on operating efficiencies and the implementation of new systems and processes.
“The business was overcapacity in the autumn, but was able to manage overflow storage requirements more selectively avoiding a negative impact, unlike the prior year,” said NWF. “The exit of AB World Foods in the second half moved the focus onto cost reduction to reduce variable costs and increased the emphasis on gaining new business, both for storage business and repacking activity.”
Sales fell 4.1 per cent to £42.4m as a result of lower storage levels. Storage overall was at an average of 105,000 pallets (2011: 108,000 pallets), in line overall with the working capacity of the business. Storage peaked in November with an average of 120,000 pallets in stock during the month that included a one-off stock build.
Boughey focused on cost reduction following the exit of AB World Foods in February 2012 with reductions in fleet, staffing and overheads to reduce the variable cost base. It has also boosted its business development activity.
NWF group operating profit fell from £9.3m to £6.3m despite a 16.5 per cent rise in sales to £540.2m. Chief executive Richard Whiting said: “Feeds and Food performed well and in line with our plans. Fuels disappointed as a result of challenging market conditions with the combined impact of an extremely mild winter, record fuel prices and a tough economic environment.”
