Tougher trading for supermarket

Frozen food chain Farmfoods suffered a 17% fall in turnover to £694.4 million last year.

Profit before interest and tax slipped back by less than 3% to £21.1m.

The firm started life as a meat processor in Aberdeen in 1955 and is now based in Cumbernauld.

It employs around 4,300 people at more than 300 stores throughout the UK.

It has six stores in Fife, two in Perth, five in Angus and three in Dundee.

The trading environment for supermarkets has become tougher in recent years with the success of budget retailers Aldi and Lidl.

The major supermarkets have been forced to lower their prices to attract shoppers in a significant change in strategy.

Farmfoods said “trading conditions have been and are expected to remain competitive”.

It identified energy costs as another factor influencing its performance. The operation of its vast quantity of freezers for the frozen foods means Farmfoods’ energy costs are large. “The group consumes significant levels of electricity supplies,” director Eric Herd continued.

“The group places great importance on energy efficiencies, both through energy efficiency campaigns and through the introduction of more energy efficient technologies.”

He said diesel – the group having a large network of outlets to supply – is another significant cost.

The purchasing process is actively managed with consumption carefully monitored.

Farmfoods continues to promote the benefits of frozen foods and a safe and healthy environment for employees and customers.

It also continues to review and improve its environmental performance and complies with relevant regulations.

Farmfoods invested more than £3.4m in freehold property last year.

Mr Herd said the directors consider the group’s financial gearing through internal cashflow and longer term bank loans to be satisfactory for its operations for the foreseeable future.

The Farmfoods store on South Street, Perth.