Boughey Distribution is a leading consolidator of ambient grocery products with significant warehousing and distribution assets.
The business consolidates full loads from its customers, the food producers and importers, and ships across the UK daily to all the major supermarkets, cash and carry and food service customers.
- Storage at an average of 97,000 pallets (2015: 92,000)
- Total loads in line with prior year
- Operating profit increased by 8% to £2.7 million (2015: £2.5 million)
- Excellent customer service levels maintained at 99.7%
Boughey fleet refresh
During the year, Boughey Distribution has commenced the refresh of its fleet with 53 Mercedes tractor units now ordered.
The Business has a leading position in consolidation ambient grocery products in the North West."
This has been a strong year in Food despite supermarkets’ continued fight for market share. The business has focused on advance preparation of loads to ensure departures are on or ahead of time. This has had the benefit of making the business attractive for subcontractors who can arrive and leave in good time and critically has enabled the division to improve both the number of, and the margins achieved from, backload activity. Wardle has remained full throughout the year and overflow storage facilities have been managed effectively. Additional long-term contracts have been signed with customers during the year to maintain the utilisation of the site going forward. Service levels have been maintained at 99.7%.
Revenue increased 1.1% to £37.6 million (2015: £37.2 million). Storage overall was at an average of 97,000 pallets (2015: 92,000 pallets), with the full year benefit of customers won in the prior year and some organic customer growth. Total loads were in line with prior year. Headline operating profit increased by 8.0% to £2.7 million (2015: £2.5 million), as a consequence of improving operational efficiencies, improved backload margins and additional activity in the repacking operation.
The new Palletline operation, which started in March 2015, is working to plan and is being utilised by existing Boughey customers and others within Cheshire postcodes.
Demand for our customers’ products continues to be stable and the outlook for most product categories handled by the business is resilient. The business operates in a competitive supply chain and needs to continually demonstrate the value and service that it provides to food manufacturers and importers. The business has a leading position in consolidating ambient grocery products in the North West, with high service levels, industry leading systems and a strong operating performance being the key components of its customer proposition.