Egg packer Fridays sees profits slide

Kent-based egg producer/packer, Fridays, has reported a year of lower turnover and squeezed profits in accounts just submitted to Companies House.

The latest financials show that turnover was down from £53.6m to £49.8m in 2013, while the cost of those sales increased from £31.3m to £33.5m.

After allowing for administrative expenses, exceptional items, interest and taxation, net profit for the year came to just £2.7m compared with £8.2m in 2012. Return on capital employed is put at 9.9% compared with 33% the previous year.

“Following an exceptionally strong egg market in 2012, lower egg prices and higher animal feed costs resulted in reduced turnover and gross profit in 2013,” said a short strategic report. “The company continues to invest in new facilities for growth and efficiency improvements.”

Shareholders in the company received no dividend in 2013, and directors’ remuneration increased just slightly from £107,000 to £109,000.

Despite the tough environment, the company says it “has considerable financial resources”.

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