Spam owner records a meaty £1.1bn sales
By Stephanie Bartup, Midlands Correspondent
The owner of the Spam, Stagg and Danepak brands has secured sales of more than £1.1bn in its year-end results, Insider can reveal. Warwick-headquartered Tulip managed to creep over the billion-pound sales barrier despite a drop in pre-tax profit of almost £48m.
The company produces fresh pork, bacon and sausages as well as pies, canned and cooked meats for both the retail and foodservice markets.
In its latest accounts to 3 October 2010, Tulip said sales remained static at £1.1bn, despite a drop in pre-tax profit to £37.4m. This was down on the company's 2009 result of £85.8m.
After tax, the company's profit for the year stood at £28.8m. Operating profit remained unmoved at £40m.
Of the company's £1.1bn sales, £1bn was secured within the UK, with only £26,299 recorded in other European countries.
Tulip has 24 sites across the UK, including several major operations in the West Midlands. The company owns the chopped pork and ham brand Spam; Danepak bacon and pork; chilli con carne giant Stagg and Plumrose ham.
Over the 12 months, the company repaid a £50m bank loan from Danske Bank. It now has facilities on loan worth £144m from Nordea Bank Finland and FIH Ehrvervsbank.
The number of employees working at the company dropped by more than 300 over the year-long period. A workforce of just more than 6,900 was recorded in 2010, compared with more than 7,200 the year previous.
Tulip, which is based at Warwick Technology Park, published its year-end results through Companies House.
The directors behind Tulip said they were confident in the company's foreseeable future.
In a statement, they said: "The company is funded through long-term bank loans and equity and meets its day-to-day working capital requirements through an overdraft facility. In light of the current economic conditions, the directors have reviewed the forecast performance of the business.
"After making enquiries, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future."
