Shloer and WKD owner toasts a 6.5% rise in profits to £19.6m
Belfast-based SHS Group enjoys a good 2019 despite Brexit uncertainty
Pre-tax profits at the Northern Ireland grocery products firm behind Shloer rose by 6.5% from £18.4m to £19.6m during 2019.
SHS Group, based at Airport Road West in Belfast, said it is now entering into the busiest time of year for sales of the fizzy grape soft drink.
Demand will also be high for its popular pre-mixed alcoholic drink WKD.
According to company accounts filed this week, turnover for the year ending January 3 was also up 4%, from £549m to £570m.
The family firm, led by chief executive Elaine Birchall, markets, sells and distributes grocery and healthcare products.
It manufactures and sells drinks, condiments and sauces, and firelighters and matches.
Its portfolio of alcoholic beverages includes cider brand Merrydown.
During the year turnover from UK sales was £485.1m, with rest of world turnover £84.8m.
Both figures were up on the year before.
Employee numbers also rose from 1,108 to 1,148.
The company’s highest paid director received £1m in remuneration.
However, the report also highlighted the widespread impact of coronavirus.
It said: “The Covid-19 pandemic has posed many challenges worldwide and all areas of the economy have been impacted.”
But directors said they were happy to prepare the accounts on a going concern basis.
They said that despite the pandemic, the company continued to be cash generative, could comply with its banking covenants and meet its obligations as they fall due.
During 2018 it acquired 3V Natural Foods, the owner of Meridian nut butters and Rocks organic squashes.
In 2017 it acquired No&more infused water and Standard Brands, the Surrey-based owner of Zip and Sunny Jim firelighters.
The strategic report filed with the accounts said that the business had driven “top line growth by innovation, new business, brand investment and acquisitions, and rationalised non-performing categories and channels”.
It added: “Group trading profits in 2019 reflect investment in our brands, new markets, research and development, manufacturing assets and people development.
“Despite a challenging business environment, commodity and foreign exchange pressures and continued Brexit uncertainty, results were enhanced by prudent management of operating costs and optimal portfolio management.”
It concluded that given the backdrop of economic and market conditions, “both the results for the period and the prospects for the future are satisfactory”.
On Brexit, the company noted the situation remained uncertain.
It added: “The company has continued its planning exercise and identified the areas which may have an impact on the group. Where appropriate, we are taking steps to avoid any exposure and are creating contingency plans and appropriate solutions.
“Our planning remains active as the Brexit situation unfolds.”
It said that for staff who were unable to work from home or who were deemed essential workers, it had put arrangements in place to keep the workplace environment safe.
The company is owned by the Sloan and Salters families. Its board includes family members, as well as Ms Birchall and her predecessor Michael Howard.