Scottish red meat firm reports nearly £3m loss
J W Galloway, Scotland’s largest red meat processor, has posted pre-tax losses of £2.94 million for the year ending 2 March 2014, blaming a hike in meat prices following horsegate for the results.
The meat group, which owns Scotbeef, Vivers Scotlamb and Scotbeef (Inverurie), has filed the financial reports with Companies House. They show that J W Galloway’s continuing operations turnover was up by 21%; at £308.9m, from £255.6m in the 53 weeks ending 3 March 2013. However, despite the turnover increase, it has found itself firmly in the red.
The company report explained: “The financial performance was heavily influenced by the steep rise in cattle costs during the early part of the year, which followed the horsemeat scandal. Retailers involved were reluctant to pass any increase arising in the supply chain on to consumers, and other retailers were forced to follow suit, leaving the company to bear the burden of the cost inflation.”
J W Galloway’s net debt also rose from £9.9m to £12.95m. However, the company believes that it still managed to perform well in the circumstances: “It was not until the second half of the financial year that the imbalance was addressed and profitability returned. Throughout the challenging period, customer confidence in our product provenance and supply chain integrity remained high and this drove increased sales volumes in an overall declining market.”
Want more stories like this in your inbox?
Sign up for our FREE email newsletter
- red meat
- supply chain
- J W Galloway
- suit leaving
- increase arising
- retailers involved
- explained “the financial
- “the financial performance
- galloway’s net debt
- scandal retailers involved
- horsemeat scandal retailers