Samworth investment pays off

Leicestershire-based Samworth Brothers, maker of Ginsters pasties and Soreen malt loaf, said in a trading statement its investment in staff and facilities had paid off, with revenues topping £900m.

Samworth Brothers turned over £901.6m in the year to 2 January 2016, up from £836.9m a year earlier, newly filed results have revealed. Pre-tax profit also surged to £45.7m from £36.1m in 2015.

Samworth Brothers employs around 7,800 workers at sites in Leicestershire and Cornwall and comprises a number of businesses, including Ginsters, Soreen and Melton Mowbray pork pie maker Dickinson & Morris.

Chief executive Alex Knight said in a statement that after a “number of tough trading years” Samworth’s “continuing commitment to investment in staff, facilities, customers, communities and suppliers” had led to a better performance.

He said milestones achieved in 2015 had left Samworth Brothers “in a better position for the future”, but added an air of caution: “Looking ahead, we expect future additional headwinds. Most particularly we anticipate continuing raw material price rises, due to increased global demand and some global shortages.

“The currency impact of the Brexit decision has added to the challenge and increased uncertainty. Although there are several indications that the business environment will continue to be tough in 2016, I feel confident we are in a strong position to continue to grow.”

As a result of its performance, an interim dividend of £18.2m was paid to shareholders, up from £15.3m a year earlier.

Of his strategy Knight said: “Investment in capital expenditure remains an important part of ensuring that our food manufacturing facilities continue to be some of the most efficient and high-quality in the UK. In 2015 our capital investment was more than £31m, taking our total investment over the last five years to over £185m.”

In August Samworth announced it had plans to expand into the food-to-go sector with the launch of its new Deli Bite brand.

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