Fife mill hit by effects of Storm Desmond

PRODUCTION: Consistency of product and customer service driving sales growth

Carr’s Flour Mills’ trading was affected by lower raw material costs and Storm Desmond in the year before the company, including its operation in Fife, was sold for £36 million.

Accounts for the flour milling business for the year to September 3, 2016, covering the mills in Kirkcaldy, Cumbria and Essex have been published by Companies House.

They show turnover fell 11% to £71.4 million and profit before tax slipped by 7.5% to £2.25m.

Director Duncan Monroe said the turnover fall was due to the lower cost of raw materials, with a large, above average quality home grown wheat crop resulting in lower wheat prices.

“Turnover was also affected by the temporary loss of sales to a major customer whose site was severely impacted by Storm Desmond,” he said.

“Our own business interruption insurance minimised the financial impact of this lost volume and by the end of the financial year volumes had almost recovered to normal.”

Storm Desmond caused devastation in the Carlisle area in December 2015, resulting in United Biscuits’ factory being flooded.

Production of many household favourites including McVitie’s Ginger Nuts, Carr’s Water Biscuits and Crawford’s Custard Creams and Bourbons, was severely disrupted by the deluge.

Mr Monroe said the firm continued to strengthen ties with a number of important customers and saw growth in sales.

The increase was underpinned by consistency of product, high levels of customer service and good commercial relationships.

Sales growth was achieved in most customer categories, including retail packs.

Three days after the end of the accounting period, Carr’s Group announced the sale of its three sites to Whitworths of Wellingborough, Northamptonshire.

The Kirkcaldy mill had previously benefited from a £17m investment, making it the most modern facility of its kind in Scotland.

All 80 employees at Kirkcaldy, as well as at Carr’s mills in Cumbria and Essex, transferred to Whitworths.

Carr’s returned £16 million of the sale proceeds to shareholders by way of a special dividend.

Almost £9m was retained to strengthen the balance sheet and fund organic growth in high value markets in agriculture and engineering.

Martin George, chairman of Whitworths Holdings Limited, said he was delighted to bring the flour mill business into the fold.

The flour mill when it was owned by Carr’s.