Nationwide Produce has joined the elite group of fresh produce companies with sales exceeding £100 million after a huge increase in turnover.
The grower and supplier has reported sales of £107.1m in the period from 30 May 2015 to 3 June 2016, up from £79.5m between 31 May 2014 and 29 May 2015. Turnover rises to £108.5m taking into account Nationwide’s 50 per cent stake in Anglia Growing Partnership, its joint venture with QV Foods.
The company last year placed 35th in the FPJ Big 50 ranking of leading companies, but this year’s figure could potentially propel it into the top 25. Pre-tax profit also remained steady at £1.2m, up from £1m the year before.
Managing director Tim O’Malley put the improved turnover down to a more balanced supply-demand position in Europe following two years of oversupply, the first full financial year of trading for its Kent fruit division, a half-year of trading from a new exotics team in Evesham, continued growth in its Dutch and Spanish businesses, and a major increase in the product range.
O’Malley said the company's European businesses were performing “exceptionally well”, with trade exceeding £41m and ranking Nationwide as one of the largest buyers of Spanish and Dutch produce in the UK.
The business has also been looking increasingly at the export market, selling to 23 countries outside the UK during the accounting period, and as a further sign of diversification, Nationwide’s product range has expanded beyond fresh produce for the first time, supplying lines such as egg noodles, coconut oil, soy sauce and rice to the foodservice sector.
In total, the number of products it sells has risen from 160 to 266.
Despite all the positive news O’Malley – who recently appeared on Sky News to discuss the impact of inflation and Brexit on businesses – warned that more expensive imports, running costs and the weaker sterling has been challenging for the company.
Nevertheless the firm looks set for further growth. While not predicting a similar surge in turnover in 2016-17, O’Malley said first-quarter sales were up 9.4 per cent on the same period in 2015-16.
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