Free-from bread supplier Genius has cut its losses by 20% after restructuring its business over the past two years.
The business made a loss after tax of £6.7m in the year to 31 December 2018, down from £8.4m the previous year, according to accounts filed at Companies House.
While revenue fell by just under £4m year-on-year to £30.7m, the company said it had held on to its dominant UK market share and had maintained international revenues after moving to a direct selling operation in Continental Europe.
The results followed a major shake-up at Genius that saw it shift away from own-label supply to focus on its branded business.
As a result, Genius has axed around 170 jobs across the business in the past two years, closing its production facility in Hull.
In its accounts for 2018, Genius said simplifying and focusing its operations had enabled it to improve its gross margins for the fourth consecutive year.
The business added that it had also invested in brand marketing and R&D in the past year, and had been supported by Scottish Enterprise in developing proprietary technology that enabled it to scale up its gluten-free processes globally. It upped investment in bakery equipment slightly, from £0.8m in 2017 to £0.9m last year.
‘’Genius continues to be the UK’s leading gluten-free bakery brand,” chief executive officer Jeremy Bradley told British Baker.
“Following completion of the program to consolidate production at the Bathgate bakery and exit low-margin business, the 2018 results reflect a solid year of improving underlying performance. 2019 continues well, with the business in double digit-growth, supported by investment to build the Genius brand in high potential markets and further strengthen margins.’’