Turnover has passed the £100m mark for the first time at Castell Howell Foods. The milestone coincided with the building of a 33,000 sq ft extension to the food distributor’s headquarters in Cross Hands.
The company is behind the Celtic Pride Beef & Pork, Farm Fresh and Caffe Eto Coffee brands and has four satellite depots at Avonmouth, Blaenau Ffestiniog, Chirk and Merthyr Tydfil.
According the latest accounts for Castell Howell Foods Ltd, turnover rose to £101.4m in the year ending 31 October 2016, up from £94.3m in 2015.
Pre-tax profit also increased to £3.6m from £3.2m the year before.
In their report accompanying the results, the directors said the turnover figure represented a “signiﬁcant landmark” for the business.
It coincided with the start of building work on a £3.5m, 33,000 sq ft extension to its Cross Hands facility, which has completed following the end of the financial year.
The extension, together with the new butchery developed in 2015, is expected to support further growth.
Writing in the company’s accounts, chairman Brian Jones said: “Performance has been strong again in 2016 with margins holding up and strong sales growth. It was particularly pleasing to see turnover exceed £100m for the first time, coinciding with work commencing on the building of a 33,000 sq ft extension to the premises at Cross Hands.
“After relocating to Cross Hands from Carmarthen in 2008, turnover has more than doubled and space has had a constraining effect on logistical efficiency over the past two to three years.”
Towards the end of the year, the company was affected by the adverse effect on sterling following the European referendum. However, this did not have a major impact on the year’s financial performance at margins are expected to be maintained in 2017.
The director added that investment would continue into the business’ fleet and technology and they were confident of maintaining the “excellent performance seen over the past three years”.