Warburtons: turnover and profit rises 20 percent in 2008

Bolton / UK. (wbl) Family-owned baker Warburtons Limited defied rising raw material and energy costs to post a 20 percent rise in profits and turnover in its most recent set of accounts. The company recorded a turnover of 498 million GBP in the year to September 27, 2008; up from 414 million GBP the previous year. It also increased pre-tax profits to 31,8 million GBP, up from 26,2 million GBP in 2007.

Warburtons did see the amount of cash it held drop from 109 million GBP to 49,2 million GBP and its net asset values also reduced, to 299 million GBP from 324 million GBP the previous year. It also had to battle against the price of raw materials and energy increasing 41 percent in the year, to 176 million GBP from 124 million GBP, which company chairman Jonathan Warburton said had led to the firm having to raise its prices.

The family-owned company paid out dividends of 30 million GBP for the period and 5,6 million GBP relating to the prior year. Directors´ emoluments for the year reached 2,9 million GBP, up from 2,6 million GBP a year earlier, with the highest paid director receiving 846’000 GBP, up from 707’000 GBP.

The number of employees grew to 4’809 from 4’494 as the firm opened new plants and depots in Wakefield and Stockton and planned to open a facility in Bristol. Warburton said the marketplace was «extremely challenging» but the new openings would increase the firm´s capacity and should bring further growth.

Looking to the future, the chairman said: «As Britain´s second biggest grocery brand, we remain totally focused on the key driver of our growth, which is an uncompromising commitment to providing consumers with locally-baked, great-tasting, quality products every day. «We are one of the best-invested food businesses in the country and will continue to grow our share in the bread market by investing in the brand and business to ensure future success».