Food

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.

Our strategy

  • Optimise the customer mix
  • Optimise storage and distribution solutions on the Wardle site
  • Value added niche businesses:
    • E-fulfilment
    • Palletline
  • Targeted expansion backed by customer and retailer contracts
“Delivering critical food supplies across the UK and investing in a significant expansion of the business.”
Keith Forster Managing Director

This has been a year of significant development with the planning and investment in a new 240,000ft² warehouse in Crewe backed by long-term customer contracts, which increases the storage capacity of the business by 35% to 135,000 pallet spaces. The underlying performance has been in line with expectations and the business managed the huge demand peak in ambient groceries from the supermarkets in February and March.

Revenue increased by 0.8% to £48.3 million (2019: £47.9 million). Storage overall was at an average of 103,000 pallets (2019: 100,000 pallets), with external warehousing being utilised until April. Significantly, pallets despatched increased by 4% on the prior year, reflecting the increased activity of new customer contracts and the additional demand experienced before and during lockdown.

Headline operating profit was £1.4 million (2019: £1.8 million), reflecting the solid underlying business performance offset by £0.5 million of one-off start-up costs incurred at Crewe. Demand continued to increase for e fulfilment business with additional customers now utilising the facility, and the packing room and Palletline were in line with expectations.

In February 2020 the Group commenced operations in an additional leased 240,000ft² warehouse in Crewe conveniently located close to the M6 and to its main Wardle site. This newly constructed, state-of-the-art facility is backed by long-term customer contracts. The facility was fully racked out and completed on time and in line with budget in spite of lockdown and is fully operational with stock build underway.

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.

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Fuels

Accelerating development

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Feeds

Growing talent

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