Boughey Distribution is a leading consolidator of ambient grocery products to UK customers with over 1,300,000ft2 of warehousing and significant distribution assets.
156,000
Pallets stored
904
People
150
Trucks
324
Trailers
Our Food locations
Review of the year
Food delivered a disappointing performance as lower than expected storage levels combined with a lower throughput rate. The new warehouse at Lymedale was completed early in the year and is operating well. However, the slower than anticipated conversion of the customer pipeline meant there was some excess warehouse capacity across the business in the year. This has been a key focus for the Group to resolve, and positive progress is being made to convert the pipeline of new business from existing and new accounts.
In response to the performance of the business, the Group took decisive action. Replacements were made to the senior management team to bring in additional experience to improve performance and support future growth. A restructuring programme was undertaken at the end of the financial year to right-size the cost base of the warehouse to reflect current levels of activity and to provide a simplified and more scalable organisational structure.
Revenue increased by 10.9% to £86.2 million (2024: £77.7 million). Storage utilisation overall was at an average of 156,000 pallets representing 85.7% of total capacity (2024: 137,000 pallets). Total throughput was 5.6% higher than prior year, but 8.3% lower than the increase in storage reflecting the slower customer stock turn.
Headline operating profit was £4.3 million (2024: £3.7 million). This included the final ramp up costs in respect of the completion of the new warehouse at Lymedale as signalled at the half year.
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 grocery manufacturers and importers. We are a leading specialist in consolidating ambient grocery products in the UK, with high service levels and a consistent operating performance being the key components of the customer proposition.
The Group continues to look for opportunities to grow market share by servicing additional customer demand, whether through further additional warehouse facilities or through targeted acquisitions, whilst growing its pipeline of new business.
