Jam and marmalade maker Tiptree has increased sales by 10.6% to exceed £40m for the first time in its long history, but profits were hampered by the costs of shelving plans to build a new factory.
The record turnover of £40.6m in 2015 was driven by growth in the catering and ingredients channels of the preserves business, with the retail side static and a rise in exports outside Europe, according to accounts filed by parent company Wilkin & Sons.
Pre-tax profits fell more than 30% to £1.5m after exceptional costs of £1.5m related to the scrapped factory redevelopment plan. Chairman Peter Wilkin called the decision to halt the project to bring all manufacturing together on one Essex site “extremely disappointing”.
But he added the benefit of having a larger factory was “far outweighed” by rising costs.
Wilkin & Sons, which also owns Cole’s Puddings, Tiptree Patisserie and Thursday Cottage, is now planning to refurbish and extend the current site instead.
Wilkin said the retail market would remain flat and growth would have to come from new categories and NPD.
The group has made significant changes to its management team since the year end, with Ian Thurgood standing down as joint MD at the end of April after 40 years with the business. Finance director Stuart James has become MD, with finance manager Georgina Offord stepping up as new FD.
Wilkin also plans to hand over his chairman post to current joint MD Walter Scott in July.
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