Manchester wholesale bakery GH Sheldon’s saw a sharp drop in profits in the year to the end of February, according to its recently filed annual accounts.
The accounts, filed on 1 September, revealed that pre-tax profits dropped by 62.9% to £428,925 for the year ending 29 February 2016. Turnover was £12.5m down by 11% year on year.
The family-owned company, which supplies supermarkets including Tesco, Asda, Sainsbury’s, Morrisons and Co-op, blamed “the very competitive conditions experienced throughout the industry”.
But directors said that there had been “substantial” new business wins towards the end of its financial year, with increased turnover being recorded from March 2016.
A report accompanying the accounts said: “The directors are confident of future orders from existing national supermarkets and potential new customers and this will sustain further growth over the next 12-month period.”
Own-brand products were attracting customers over a wide geographical area and the company was confident it had capacity and reserves to facilitate growth, the report said.
GH Sheldon, established in 1949, is run by managing director Graham Sheldon and directors include his son Lee and daughter Sarah.
The bakery supplies a range including Lancashire oven-bottom muffins, potato cakes, baps, hotdog rolls, fruit teacakes and hot cross buns.