Meadow Foods, the UK’s leading independent dairy group, has reported a 14.3% increase in sales for the year ended 31 March 2011, according to recently filed accounts.
The company, which is headquartered at its creamery in Chester and has production sites at Holme-upon-Spalding Moor in Yorkshire and Peterborough, posted a pre-tax profit of £8.8m (2010: £5.5m) on turnover of £301m (2010: £263m), and reduced net borrowings to £3.4m during the year.
Increased demand from major food manufacturing groups for the company’s dairy ingredient products has continued to drive sales growth in the current year.
Over the past 12 months, Meadow has invested over £2.5m in capital investment projects to increase capacity and efficiencies at its manufacturing facilities.
These new investments include a new automatic milk reception at the company’s Chestercreamery and new equipment at its site in Holme-upon-Spalding Moor.
With a strong capital structure and an ambition to grow its core operations, Meadow plans to continue its ongoing investment programme and to look for acquisition opportunities in 2012.
Simon Chantler, executive chairman, said: “The year to the March 2011 was very challenging but we successfully managed to grow volumes without significant margin erosion. Our programme of capital investment led to greater efficiencies and cost reductions which helped to increase profits”.
“Our strategy is to continue to grow our diverse interests in the dairy sector through organic growth and selective acquisitions. The group is structured to enable us to expand whilst focusing on increased efficiencies and cost control across the business.”