Farmfoods hoping for limited coronavirus impact as annual sales edge up
Frozen food retailer Farmfoods, one of Scotland’s largest private companies, expects the impact of Covid-19 on its business to be “limited” despite expecting to be hit by additional costs to keep its stores open during the pandemic.
The comments came after the group, run by the publicity-shy Herd family, reported that sales edged up last year despite fierce competition.
The firm has been able to keep its 300-plus stores open during the lockdown but said it was “monitoring the situation closely for further developments and any potential impacts on group operations”.
“The group’s priorities in dealing with the exceptional circumstances posed by Covid-19 are to ensure the safety of our customers and colleagues, support our suppliers and maintain the availability of food,” it said.
The comments came in the Cumbernauld-based company’s latest accounts which show turnover edged up to £661.8 million in 2019, an increase of £1.45m on the 2018 figure.
Pre-tax profits jumped to £22.1m from £12.1m but that was largely down to a £11.9m gain on disposal of assets. During the year the group sold a distribution centre for £16.8m to GSC Properties which members of the Herd family are directors of. At the operating level profits fell to £10.8m from £12.4m.
Net borrowings reduced to £6.5m from £13.2m and the group also invested just over £14m in property and assets during the year.
Staff numbers were unchanged at 3,864 and the highest-paid director received a total pay package of £930,000, down from £1.2m in 2018. The accounts also show that a loan of £2.5m was made available to Eric Herd which was repaid before the end of the year with interest.