Boughey Distribution is a leading consolidator of ambient grocery products to UK supermarkets with over one million ft² of warehousing and significant distribution assets.
The business operates in a competitive supply chain and needs to continually demonstrate the value and service that it provides to food manufacturers and importers. The business has a leading position in consolidating ambient grocery products in the North West, with high service levels, industry leading systems and a strong operating performance being the key components of its customer proposition.
- Optimise the customer mix
- Optimise storage and distribution solutions on the Wardle and Crewe sites
- Value added niche businesses:
- Targeted expansion backed by customer and retailer contracts
“Solid overall performance managing significant volatility and delivering efficiency improvements.”
Keith Forster Managing Director
A solid overall performance has been achieved with underperformance in H1 offset by a result ahead of expectation in H2. Significant trading volatility was experienced in H1 as a result of atypical Covid-19 demand patterns from consumers and retailers, compounded by uncertainty around Brexit, which together led to business inefficiencies. With stock in the optimum locations in H2 and more normal demand levels, combined with a significant efficiency improvement backed by the new Crewe warehouse, profitability markedly improved.
Revenue increased by 13.5% to £54.8 million (2020: £48.3 million). Storage overall was at an average of 120,000 pallets (2020: 103,000 pallets), as the Crewe facility came fully on stream and no external warehousing was utilised. Pallets despatched increased by 13% on the prior year, reflecting the increased activity of new customer contracts. The mix was somewhat adverse as a result of lower activity for food service and cash and carry outlets where complex distribution activity generates higher value work.Headline operating profit was £1.9 million (2020: £1.4 million). Demand increased for e-fulfilment services and whilst a small contribution was made, the growth of the business was offset by continued investment
in training and expansion of facilities. The Palletline operation exceeded expectations and a solid performance was delivered by the repacking operation at Wardle.
The new Crewe 240,000ft² warehouse was fully utilised in the year, with new and existing customers, with storage at an average of over 26,000 pallets out of a capacity of 35,000 spaces and is 90% utilised at year end, performing in line with our expectations. This operation focuses on full pallet, full load activities with more complex added value operations being completed in the Wardle facility.
Demand for our customers’ products continues to be stable and the outlook for most product categories handled by the business is resilient. The business operates in a competitive supply chain and needs to continually demonstrate the value and service that it provides to food manufacturers and importers. The business has a leading position in consolidating ambient grocery products in the North West, with high service levels, industry leading systems and a strong operating performance being the key components of its customer proposition.