A tasty £18 m slice of dividends for Ginsters pasty family as profits soar
THE food giant behind Soreen fruit bread and Ginsters pasties has paid its family owners an £18million dividend after profits at the group leapt last year.
Leicestershire-based Samworth Brothers, which employs 8,500 people, made the payment after profit increased 27 per cent to £47million.
The 120-year-old company has expanded rapidly in recent years with new factories, acquisition of other firms and by exporting products to Europe such as its Melton Mowbray pork pies. Sir David Samworth is life president of the fourth-generation family business which has become one of the biggest suppliers of chilled foods and ready meals to Britain’s supermarkets.
Chief executive Alex Knight said: ‘It was a year of continuing challenges in the grocery market but the company made good progress. We expect future headwinds, particularly raw material price rises due to increased global demand and some shortages.’
Sales at the company rose 8 per cent to £902 million. A £30million capital investment grew the total over five years to £185million.
It came under fire earlier this year after renegotiating staff contracts by reducing benefits while offering higher overall pay. It is still in dispute with one worker but says almost all staff have agreed to the new terms.
The firm has earmarked £15million over three years to cover higher labour costs under the Government’s new living wage legislation, which it says exceeds new minimum wage requirements.