PD Hook reinvests ‘modest’ profits from poultry
Pre-tax profits at PD Hook Group were relatively static in the year ending October 2012, with increased turnover ploughed back into the business and used to cut borrowing.
The accounts just posted at Companies House list the combined turnover of the group, including its 50% share of joint venture Hook 2 Sisters, at £277m, up £10m on the previous year, while pre-tax profits were around £13.9m, up £2.2m.
The directors’ report said the company had focused on inward investment – putting £6.8m into its farms and hatcheries. “Our farming base has expanded during the year to ensure we have sufficient production space to meet the market demand for UK chicks and chicken,” it said.
It added that there had also been a focus on reducing the level of borrowing during the year, with £3.4m being repaid to the bank. “We have continued to enjoy a strong relationship with our key financiers, HSBC, who have supported the business and its capital expansion plans.
The hatcheries arm of the group, PD Hook (Hatcheries), reported turnover up almost £4.3m to £99.5m – accounting for over a third of overall turnover.
Average monthly staff numbers were also up some 5%, to 453 across the group, and a £1.01m emolument was split between four directors.
Overall, the report points to the tough economic environment for poultry producers, in particular due to the competition between retailers. “They have used price reductions and promotions to drive footfall. This has placed increasing pressure on the group.”