Wilkin & Sons puts its £2m loss down to hikes in cost of energy

Royal Warrant holder Wilkin & Sons fell to a £2m operating loss last year as soaring energy prices and input costs hurt its bottom line.

Chairman Walter Scott said “virtually all of our troubles can be laid at the door of energy costs”, as the Tiptree maker fell to a £2m operating loss in 2023 from a £1.1m profit in the previous year.

Pointing to energy-related hikes in the cost of glass and cap manufacturing, packaging, increased labour and raw materials, he said the supplier had been “buffeted by inflationary pressures”.

These losses were particularly incurred by the Tiptree brand, with other areas of the business – including Thursday Cottage and Cole’s Christmas puddings – seeing less margin erosion.

Despite the headline loss, headline sales grew to £53.5m from £48m during the year.

Tiptree sales improved by 8% to almost £354, although this was driven by a 55% jump in catering revenues as retail sales fell back 45%.Thursday Cottage was down 10% to £3.8m, albeit retaining margin, while Cole’s was down 5%.

The accounts state that while the next few years will be “very challenging”, the board remains optimistic for the future.

“It would be all too easy to pull up the drawbridge and stop investment… but we are certain this would not be an appropriate strategy for long-term growth,” the accounts stated.

The company, which has held a Royal Warrant since 1911, has been invited to reapply.