A new generation of fish and chip shop customers has been welcomed by Hull supplier Smales after sales increased 16 per cent and it swung back into profit.
The 85-year-old company saw turnover hit £73.4 million in the year to August 31 - up from £62.9 million in the previous period.
Back in the black with an operating profit of £1.6 million, results just released by the West Dock Street operator document a strong recovery from losses of £674,000 in 2019 and £241,000 in 2020.
Volumes were also up 20 per cent - more than 12,000 tonnes - with directors having “every expectation of further volume growth in the financial year 2021/2022”.
Smales has forged links with more northern European quota holders to handle the uplift, selling into the foodservice sector.
It recently ceased processing in a major restructure that saw it focus on pure frozen sale and distribution.
In the strategic report accompanying the Companies House filing, managing director Lee Smales said: “The company's largest customer base, the UK's takeaway fish and chip shops, remained largely open for business throughout the Covid-19 pandemic. The fish and chip shop sector adapted quickly in the early months and introduced new methods of attracting customers. Increasing numbers of fish and chip outlets offered their customers the options of ‘click and collect’ and home deliveries. A new generation of fish and chip consumers was created during the pandemic by shops introducing customer-focused buying options.”
The sector was also boosted by families taking more holidays in the UK.
Of the chilled exit, with the division’s premises sold in July last year, Mr Smales said: “The closing of the chilled seafood division allowed the company to consolidate its business and go forward with renewed optimism for a profitable future.”
Looking ahead, he added: “The business has developed an excellent reputation throughout the UK and Europe, thanks to its sourcing of quality fish and seafood. The board believes that the company’s strategy, together with its experienced management, will be a solid foundation to increase market share and sales volume within its core trading division.The company has a 2,500 customer base, and going forward will employ around 96 logistics, sales and administrative staff to continue the development of this into the future.”
Capital investment opportunities have been eyed, with Mr Smales stating further strategically placed depots could be added “in order to improve UK geographical coverage and distribution efficiency”.
Employee numbers held up over the period, having dropped from 210 when chilled operations closed.
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