The parent company of major UK food processing group 2 Sisters has reported a £53.8 million in the fourth quarter of its financial year.
Boparan Holdings said the results for the 13 weeks to July 28 reflected the “harsh external environment” and an underperformance of parts of the business.
The firm’s sales of £694m in the quarter were up 1.5% on the same quarter in 2017. The loss widened from a deficit of £17.6m a year ago.
The 2 Sisters operation has three major operational units in Scotland, including a major poultry plant at Coupar Angus.
The Perthshire unit performs a variety of functions from slaughtering and portioning chicken to retail packaging.
The firm said it is planning to close its loss-making sites.
Ronald Kers, chief executive of 2 Sisters Food Group, said: “Our Q4 results reflect the difficult macro-economic backdrop and the challenges we have faced in our own business.
“Against this backdrop we have a clear strategic plan which we are executing at pace to improve business performance.
“We remain focused on addressing our core UK and European poultry operations and providing the right environment for our chilled and branded businesses to flourish.
“The high level of non-cash exceptional costs reported during the period reflects a reset of the baseline of the business and provides a platform for turnaround.”
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Mr Kers, who joined the Birmingham-headquartered firm from dairy giant Muller, said the company had recently acquired a “significant” new customer contract for its chilled business.
The company’s net debt has decreased by a quarter in the last year to £601.8m as a result of the disposal of the Red Meat business and Goodfellas pizzas.
It will also sell Manton Wood sandwiches in 2018/19 subject to regulatory clearances.
The three deals have an enterprise value of £370m.
Mr Kers added: “The completion of two major disposals (with a further expected to complete in early 2019) strengthens our cash position and improves our financial flexibility.”
rmclaren@thecourier.co.uk
