Prawns net sales for CP Foods UK
Worcestershire food supplier CP Foods UK has attributed a £12m revenue increase in part to a growing demand for prawns. The company, which supplies fish, duck and poultry products to supermarkets including Tesco and Morrisons, secured turnover of more than £135m in its year-end results.
However, the company said it expected a tough trading year ahead as worldwide food inflation continues to rise.
Despite the turnover leap, CP Foods UK suffered a decline in pre-tax profit from £5.1m at 31 December 2009 to £3.9m in the comparable 2010 period.
The company, which is based in Hartlebury, near Kidderminster, said the drop was partly due to a higher number of companies applying for EU quotas on cooked chicken. CP Foods said the increase resulted in "a significant rise" in associated bank guarantee costs, the full extent of which "were not expected".
Despite the drop, CP Foods UK described the year as "satisfactory". It added that the weak sterling and pressure on raw material prices had affected trading, but said margins were generally consistent with its 2009 results.
In its annual accounts submitted to Companies House, the business added that the sale of prawns "continued to show good growth" throughout the year.
Looking to its 2011 year-end, CP Foods UK said it expected margins to tighten with the effect on rising food inflation and the impact of changes from the EU quota regulations which now apply for imports of cooked chicken.
During the year, the company launched its aromatic crispy duck in supermarket Morrisons' frozen ready meal range. It also unveiled its Authentic Asia range which includes king prawn wonton soup with noodles and chicken pad Thai.
The company controls more than 40 subsidiaries across the UK under its 'Fusion' brand. CP Foods UK is itself a subsidiary of Belgium-based CPF Europe SA.
At the end of the 12-month period, CP Foods UK had secured bank loans and overdrafts of £12.6m, a slight increase from its 2009 results, which totalled £11.9m.
The company distributes its products to supermarkets and wholesalers across the UK.
Image courtesy of Frank Wouters
