Boughey expands storage as customer demand rises

The food division of NWF Group said increased demand from customers supported its investment in a new warehouse at Lymedale in January 2024 and the shed would increase capacity by 52,000 pallets, which would help support its growth.

Turnover increased by 9.6% to £77.8m, but pre-tax profit fell to £1m in the year ending 31 May 2024, from £2.3m the year before.

“Demand for our customers’ products increased in spite of food inflation continuing through the year,” Cheshire-based Boughey said.

“Throughput was 6% higher than the prior year whilst storage levels were up 12.3%, highlighting a positive increase in the stock turn of our customers’ products.

“The pipeline of new business from existing and new accounts continues to be strong and provides confidence in the prospects for the business.

“The company continues to look for opportunities to service this customer demand, whether through further additional warehouse facilities or though targeted acquisitions.”

Boughey’s occupancy of the 332,000sq ft ambient warehouse at the Lymedale business park in Newcastle-under-Lyme created 250 jobs.

It agreed a 15-year lease, with initial capital expenditure expected to be around £8.5m. NWF Group backed the investment.