Company Snapshot: Manderley Food Group
Adverse factors take bite out of profits
Manderley Food Group is now an English registered company with headquarters in Corby. The original company was Northern Ireland Tayto, producing and distributing potato crisps and snack foods.
Today's larger group is the result of an extensive purchasing programme by the original shareholders from the Hutchinson family in Tandragee when they bought a number of production units in England two to three years ago.
Whilst the value of turnover remained stable in the most recent year, the operating and pre-tax profits deteriorated sharply. The year is described by the directors as disappointing.
Their report points to two major adverse features in 2010-11.
In operating terms, there was a significant increase in raw material costs which has now been followed in 2012 by a sales price increase. Second, because of the changed market conditions, the group has rationalised production facilities with the closure of a plant in Wednesbury.
In the annual accounts for the year to July 2, 2011, the operating results include a deduction for an impairment charge of £4.8m alongside the reorganisation and redundancy costs and capital costs of moving production from Wednesbury to Corby.
Other non-cash items reflected in the accounts include goodwill impairment in the BDG group, which made windows and conservatories in Lurgan and has been placed in liquidation, of £3.3m and a further property devaluation of £5.0m taken directly from reserves in the balance sheet.
As a result of the combined cost factors hitting operating margins and the write down of shareholders reserve funds, the value of shareholders fund at the year-end was just under £59m which was just over £20m lower than a year earlier.
Average employment in the Group continued to fall in 2010-11 and, at an average of 1,365, was 10% lower than in 2009-10.