Boughey Distribution delivered a “disappointing performance” thanks to lower than expected storage levels and throughput rates, kicking off a major overhaul of the senior management team, according to its latest annual results.
Cheshire-based Boughey Distribution is the food division of NWF Group. In its latest financial results for the year to 31 May 2025, the company revealed revenue rising by 11% to £86.3m (2024 £77.8m). However the company fell into the red during the period, making a loss of £240,000, down from a pre-tax profit of £1m in the previous year.
Palletline member Boughey operates 167 trucks and 365 trailers and employs over 900 staff. It specialises in delivering ambient grocery products to UK supermarkets and has over 1.4m sq ft of warehousing. It boasts more than 130 customers, including Sainsbury’s, Tesco and Aldi.
During the period Boughey stored an average of 156,000 pallets, up from 137,000 pallets stored in 2024 and representing 86% of total capacity, whilst pallet throughput increased to 2,670,000 (2024: 2,529,000 pallets). However, whilst total throughput was 5.6% higher than the prior year, it was 8.3% lower than the increase in storage, which the company said reflected the slower customer stock turn.
Operating profit before exceptional costs was £3.4m (2024 £3m). This included the final ramp up costs in respect of the completion of the new warehouse at Lymedale.
In its review of the business, which accompanies the annual results, Boughey attributed the exceptional costs to its review of the management team, which resulted in a major management restructuring.
When Boughey announced the management restructuring in May last year, it warned that jobs, including senior management roles, were at risk.
The announcement followed the resignation of managing director Angela Carus in November 2024. She was replaced by Yearsley Group’s logistics boss Tim Moran in February 2025. Carus has told MT her resignation was not linked to Boughey’s management restructuring.
The business review said: “The company delivered a disappointing performance due to lower than expected storage levels combined with a lower throughput rate.
“The new warehouse at Lymedale was completed in the year and is operating well. However, the slower than anticipated conversion of the customer pipeline meant that there was some excess warehouse capacity across the business in the year.
“This has been a key focus for management to resolve and positive progress is being made to convert the pipeline of new business from existing and new accounts.”
The review added: “In response to the performance of the business, decisive action was taken. Replacements were made to the senior management team to bring in addıtional experience to improve performance and support future growth.
“A restructuring programme was undertaken at the end of the financial year to right-size the cost base of the warehouse to reflect current levels of activity and to provide a simplified and more scalable organısational structure.”
Turning to the future, the company said: “Demand for our customers’ products continues to be stable and the outlook for most product categories handled by the business is resilient.”
It added: “The company continues to look for opportunities to grow market share by servicing additional customer demand, whether through further additional warehouse facilties or through targeted acquisitions, whilst growing its pipeline of new business
“The benefits of the restructuring at the end of the year are expected to be realised throughout the next financial year as the business focuses on converting its near-term customer pipeline as well as building longer-term demand to support future growth.”
