Americold Whitchurch saw pre-tax profit fall 54% to £1m in 2025 as higher management charges, outsourcing costs, bad debts and share-based payments put pressure on margins.
Reporting its latest annual results for the year to 31 December 2025, the multi-temperature warehousing and distribution business recorded turnover of £42.8m, down just 0.6% from £43.10m in 2024.
However, gross profit fell by 14.1% to £13.4m, from £15.6m, while the gross profit margin declined from 36% to 31.19%, according to the company’s latest accounts.
The business, which is part of US giant Americold Realty Trust, moved from an operating profit of £2.4m in 2024 to a loss of £1.69m in 2025. Its operating margin fell from 5.66% to minus 3.95%.
In its strategic report, the company said gross and operating margins had been adversely affected by “increased group management charges, outsourcing costs, bad debts and share-based payments.”
Americold Whitchurch’s debtors increased almost fivefold to £155.4m at the end of 2025, from £32.7m a year earlier, driven by a sharp rise in balances owed by related group companies.
Amounts owed by related parties climbed to £144.7m, compared with £24.1m in 2024. The company attributed the increase to changes in the Americold group’s treasury and cash-pooling arrangements, which resulted in higher cash-pooling balances and corresponding increases in payables due to group entities.
The company said it expected these balances to be cleared before 31 December 2026.
Trade debtors rose by 28.2% to £9.1m, while prepayments increased to £1.2m. Accrued income fell to £327,613.
Despite these headwinds, Americold Whitchurch remained profitable for the year, reporting a profit after tax of £1.2m, down 44.2% from £2.15m in 2024.
Net assets increased to £21.9m at the end of 2025, from £19.9m in 2024, an increase of 9.7%.
Its warehousing division also performed well during the period with the company reporting warehouse utilisation increasing to 91% at the end of 2025, compared with 83% a year earlier.
The company said it was satisfied with its performance, which it said reflected” the resilience of the food storage and distribution sector amid geopolitical uncertainty, including increased tariffs and conflicts affecting the international business environment.”
Looking ahead, the business said it would continue investing in its infrastructure and workforce while focusing on service quality and cost control.
The company also highlighted plans to replace its fleet within the next year as part of efforts to improve environmental performance.
It is also monitoring drivers’ miles per gallon through operational key performance indicators to reduce fuel consumption and waste.
Energy use at its cold storage facilities is being managed partly through sourcing electricity from a nearby biogas plant.
The directors also thanked employees for their contribution during what they described as a “challenging trading environment”.
It also reaffirmed the company’s existing operating strategy, which includes include improving operational efficiency, strengthening customer relationships and delivering flexible services while maintaining cost and service targets.
