Fowler Welch profits up 27% despite dip in turnover

Fowler Welch said its sale last year to Culina Group had strengthened its ability to overcome challenges and enhanced its services.

In a statement from its directors, the food logistics company also said that the sale of its Heywood site last October had enabled it to focus on its core chilled business.

The comments came in its latest available financial results, which showed that in the year ending 31 March 2020, the company’s revenue dropped 6.6% to £166.8m.

However, pre-tax profits increased by 27% to £5.5m.

On 31 May 2020, Fowler Welch was sold by its owner, Dart Group Plc to Culina for £98m.

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The directors said: “This transfer of ownership into a group with increased operational synergies further strengthens both the business’ ability to meet future challenges as well as enhancing its services and offerings to current and future customers.

“The directors do not currently anticipate any significant future changes in the nature of the company’s business.”

During the period, the company also acquired the trade and assets of Culina Logistics’ Spalding operation and Eddie Stobart’s Lutterworth transport operation: “In combination, these two acquisitions will support the company’s growth plans and enhance the service provided to its customers,” it added.

The UK entered its first period of lockdown during the reported period and Fowler Welch said it had “reacted quickly and effectively to the changing customer demands and put in place processes and controls which has allowed the business to provide strong service and support to its customers, whilst protecting and supporting colleagues through the pandemic.”

In October, Fowler Welch chief executive Nick Hay joined the board of tech start-up Connected2.