Wall’s and Pork Farms producer Addo Food Group has confirmed it will close its Spalding factory next September.
Details of the closure, which was proposed during the summer, have been announced as the company reported its financial performance for the year ended 30 March 2019.
Turnover rose 12% year on year, from £278m to £312m, while operating profit before exceptional items rose slightly, from £7.5m to £7.6m. The company said operating margins had been affected by customer demand and cost inflation.
Addo said the decision to close Spalding followed a comprehensive consultation process, and the company would transfer the manufacture of the Spalding site’s products to its Poole and Palethorpes bakeries.
Addo will now focus on its other five UK manufacturing sites in Nottinghamshire, Dorset and Shropshire, which it said would benefit from the savings made by reducing the group’s footprint. The company said it would be able to streamline operations while being more agile to respond to evolving consumer tastes.
“It has been a year of change for our business as we continue to adapt our strategy in order to maintain our market-leading position and meet the changing demands of the sector,” said CEO Deborah Bolton.
Bolton, who was appointed CEO in February, has been with the business for over 10 years. She was previously general manager at various Addo sites before being promoted to divisional MD.
“The company has responded positively and proactively to changes within the sector,” she added. “We’re encouraged by the progress that the business has made in the past year as we implement our new strategy.
“This is reflected in the increased revenues in our latest financial statements. We are confident that the group will continue to grow volume and profitability through innovation, customer service, product quality and continued investment in its assets.”
The group, which manufactures under the Wall’s Pastry and Pork Farms brands, has more than 2,500 employees.