Karro profit boost for Northern Ireland operation
Pork supplier Karro Food Group, which has its largest manufacturing operation in Northern Ireland, has reported a significant annual
pre-profit following a restructuring of the business.
Karro, Northern Ireland's largest pork processor - with a base at
Cookstown in county Tyrone - had a profit of £8 million for theyear ended 31 December 2014, representing an ?11 million improvementon the previous year and the group's first profit for many years.
The group's turnover was £528 million, similar to the previous year.
It had a significant year - securing a £74 million funding package from GE Capital and RBS Invoice Finance to support UK and
international expansion and an acquisitions strategy in May, while
in March it laid off 141 members of staff.
It also launched a ?10 million capital investment programme,
financed from cash generated by the business, into processing and
production across its UK manufacturing facilities, including an
£8 million leading investment at its largest facility in
Northern Ireland.
Di Walker, executive chair of Karro Food Group, said: "Following itsacquisition from Vion by private equity house Endless LLP in January2013, Karro Food Group implemented a five-year plan to transform theunderlying performance of our business through operational
improvements that could deliver value to both Karro and its
customers.
"It is therefore extremely pleasing to announce that Karro Food
Group will have achieved the targets set out in that plan - namely
to ensure Karro is fit for the future and firmly focused on growth -within just three years. This is an achievement reflected in these
stand-out results and a clear recognition from our customers that
the revitalised group is a very welcome market participant.
Walker added that the results would enable Karro to expand in the UKand internationally.
"Our firm focus moving forward is to continue this positive
trajectory. We have an appetite to make acquisitions and this
strategy will be supported by our recently announced £74
million funding package.
"We also continue to be focused on organic growth and will further
develop our retail and trade partnerships, as well as expand our
international customer network in markets including Australia,
China, Japan, South Korea and the USA."
Chief financial officer Michael Kestemont added that the second yearof Karro's profit growth had been realised in a year characterised
by significant competitive pressure within the UK pork industry.
He said: "With ongoing support of our funding partners, Karro Food
Group is confident that 2015 will bring significant EBITDA and cash generation progression, driven by further capital investment and
continuous operational and commercial improvements across the group.
"The increasing success of Karro Food Group and its strong financialperformance is giving both suppliers and customers the confidence
to want to grow long-term strategic partnerships with the group,
cementing our position as a leading player in the UK and
international pork industry."
pre-profit following a restructuring of the business.
Karro, Northern Ireland's largest pork processor - with a base at
Cookstown in county Tyrone - had a profit of £8 million for theyear ended 31 December 2014, representing an ?11 million improvementon the previous year and the group's first profit for many years.
The group's turnover was £528 million, similar to the previous year.
It had a significant year - securing a £74 million funding package from GE Capital and RBS Invoice Finance to support UK and
international expansion and an acquisitions strategy in May, while
in March it laid off 141 members of staff.
It also launched a ?10 million capital investment programme,
financed from cash generated by the business, into processing and
production across its UK manufacturing facilities, including an
£8 million leading investment at its largest facility in
Northern Ireland.
Di Walker, executive chair of Karro Food Group, said: "Following itsacquisition from Vion by private equity house Endless LLP in January2013, Karro Food Group implemented a five-year plan to transform theunderlying performance of our business through operational
improvements that could deliver value to both Karro and its
customers.
"It is therefore extremely pleasing to announce that Karro Food
Group will have achieved the targets set out in that plan - namely
to ensure Karro is fit for the future and firmly focused on growth -within just three years. This is an achievement reflected in these
stand-out results and a clear recognition from our customers that
the revitalised group is a very welcome market participant.
Walker added that the results would enable Karro to expand in the UKand internationally.
"Our firm focus moving forward is to continue this positive
trajectory. We have an appetite to make acquisitions and this
strategy will be supported by our recently announced £74
million funding package.
"We also continue to be focused on organic growth and will further
develop our retail and trade partnerships, as well as expand our
international customer network in markets including Australia,
China, Japan, South Korea and the USA."
Chief financial officer Michael Kestemont added that the second yearof Karro's profit growth had been realised in a year characterised
by significant competitive pressure within the UK pork industry.
He said: "With ongoing support of our funding partners, Karro Food
Group is confident that 2015 will bring significant EBITDA and cash generation progression, driven by further capital investment and
continuous operational and commercial improvements across the group.
"The increasing success of Karro Food Group and its strong financialperformance is giving both suppliers and customers the confidence
to want to grow long-term strategic partnerships with the group,
cementing our position as a leading player in the UK and
international pork industry."