Sales are blooming for JZ Flowers International with hundreds of jobs created to meet ‘unprecedented demand’.
Turnover was up almost £40 million in 2021 - a 33 per cent increase from £116.8 million to £155.3 million for the East Yorkshire-headquartered firm.
Staff numbers increased at a far greater rate, with a 76 per cent uplift on headcount - from 420 to 740 - with the vast majority in production.
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But margins are being squeezed, with earnings down from £3.5 million to £1.7 million for the Newport operator, which also has a production site in Spalding, a branch in Ireland and a subsidiary in Miami.
In her strategic report accompanying the results, finance director Joanne Davison said: “2021 was a challenging year for the group. The group experienced a significant level of growth whilst faced with the challenges of servicing this demand and managing the business continuity issues associated with the ongoing Covid-19 pandemic. The labour market has become increasingly competitive and inflation across all aspects of our cost base, while supporting our customers’ growth, has had a negative impact on margins.”
While anticipating the market to remain competitive and challenging, with pressures on price and quality, the company said its relationship with its major customer - Alidi - remains strong with the long-standing partnership, now stretching over a quarter of a century - expected to continue for the foreseeable future.
Aldi takes more than 300 million of the 800 million stems handled annually, with Co-op and Morrisons also supplied.
“Despite the challenges faced during the period and unprecedented demand, the business continued to deliver and uphold our high service levels,” Ms Davison said. “The directors are satisfied that the group remains in a strong position going into 2022.”
The accelerated growth of e-commerce is also being eyed, with a pledge to help customers “grow ahead of the market” from the Dianthus Business Park team.
Ms Davison added that major clients and customers are enjoying strong growth, “while the group itself continues to explore exciting new strategic opportunities”.
One such element is a joint venture, UK Daffodils, with Cornwall-based Rowe Farming Ltd.
It launched last year, with directors satisfied with the contribution made.
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