Fowler Welch profits from Culina buyout despite "challenging market conditions"

Fowler Welch reported a £4.6m pre-tax profit last year as operational efficiencies increased due to it becoming an established part of the larger Culina group, it said.

Turnover at the chilled storage and distribution company, for the year ending 31 December 2021 was £163.1m.

In a statement signed off by the board, chief executive John Kerrigan said “challenging market conditions” had affected the business, but it was satisfied it could continue offering customers a market leading service.

In April 2021, Fowler Welch acquired AIM Logistics in Evesham, which specialises in supply chain services in the fresh produce sector, for £22.1m.

During the year, AIM generated turnover of £10.8m and a profit after tax of £1.3m.

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Fowler Welch said that AIM had acted as a subsidiary of Fowler Welch until 29 November 2021, when a group reorganisation took place and both businesses now operate as a single corporate entity.

On 28 February 2022, the company purchased a logistics company in Scotland called Vitrans for an initial consideration of £21m, with a further consideration payable upon finalisation.

It added that Brexit and driver shortage concerns had led to Fowler Welch reviewing its recruitment practices and it had “now secured the services of a sufficient number of employees to ensure the continuation of the critical supply chain”, as well as ensuring it had staff in place at peak times.

Culina Group bought Fowler Welch in 2020 for £98m.