Meadow Foods posts operating profit of £9.69m in 2013

Meadow Foods, a UK-based dairy ingredients supplier, has reported an operating profit of £9.69m for the fiscal year 2013, driven by an increase in demand for the company’s dairy ingredient products.

For the year ended 31 March 2013, net revenues totalled £339.42m.

The company, which operates from factories in Chester, Peterborough and Holme-on-Spalding Moor, stated that it used the strong cash generation to further strengthen its balance sheet.

It noted that the £2.79m of capital investment projects which are aimed at increasing capacity and efficiencies at its manufacturing facilities are on track.

Meadow Foods executive chairman Simon Chantler said, "The improved profits and positive cash flow have allowed us to make further investments into the business which will in turn allow us to grow sustainably and offer stability to both our farmers and customers."

As part of the new projects, the company is expanding its Peterborough site to increase cream storage and cultured products capacity.

It is also constructing a new lactose milling facility at its Holme-on-Spalding Moor plant as well as improving its Chester facility.

Chantler added: "With a strong capital structure and an ambitious growth strategy in place we plan to continue our programme of ongoing investment and to look for acquisition opportunities in 2014."

Established in 1992, Meadow Foods produces cream, butter, sweetened condensed milk, anhydrous milk fat, chocolate crumb and cultured products, and it has more than 250 staff.

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Image: Meadow Foods executive chairman Simon Chantler. Photo courtesy of Meadow Foods.