Bakery supplier Bako North Western Group is aiming to secure new shareholder members following a shake-up of its capital structure.
The Preston-based bakery co-operative, which supplies bakery ingredients and foodservice products, is hoping to attract members with a new share offer later this year following a decline in the number of shareholders.
The company said about 80% of its sales were to non-shareholder customers, adding that benefits to shareholders included competitive pricing, rebates and access to products and training.
Employing around 370 staff, Bako has increased its turnover from £66m three years ago to £132m last year following the acquisition of Bako South Eastern and Bako North East & Scotland in 2015.
Bako said the restructured share offering, developed with advisors Pannone Corporate, will raise capital to fund further expansion and reinforce its ethos of ‘by bakers for bakers’.
“We will be approaching existing and new customers to invite them to participate in shareholding through a new share issue later in 2018,” said Bako chair Joe Hall.
“The move will also allow us to grow our shareholder base and increase sales while preserving the value of the stake held by existing shareholders.”
The company added that it would be adopting a new growth strategy following the appointment of Mike Tully as group CEO last November.
“We decided to bring the share structure up to date, which will not only enable the group to raise external capital to fund further growth, but make it an attractive proposition to new shareholders,” said Bako non-executive director Dianne Walker.
“The change recognises the investment by the current shareholders by ring-fencing their share value in a separate class of shares.”
Bako supplies bakers, butchers, food manufacturers, catering companies, schools, restaurants and coffee shops across the UK, through its HQ in Preston and subsidiaries in Durham, Wimbledon and Norwich.