PRODUCE Investments, the Borders-based potato and daffodil grower, has reported a near 90 per cent increase in pre-tax profit to £6.6 million as revenue passed the £200m mark.
The 8.1 per cent increase in revenue was attributed to new retail contracts and longer-term commitments from key customers.
The AIM-listed business recovered from a £1m pre-tax interim loss thanks to a strong second-half, in what outgoing chairman Neil Davidson said “confirmed the effectiveness of our strategic approach and the success of the diversified business mode”.
Mr Davidson will step down at the group’s annual meeting on November 29.
The company’s potato business accounted for 78 per cent of revenue and growth in this area was aided by an increase in costs following a lower potato yield.
“We have benefited from our strategic approach in this challenging market, securing increased volumes with a major retail customer for a fixed period of three years,” said chief executive Angus Armstrong. “We are also pleased to announce that we have won a third mainstream retail account, again for an initial fixed period of three years.”
The company also grew sales into the non-retail sectors of foodservice and wholesale. Produce also said that its Rowe Farming Daffodil business had a “slightly more challenging season” but new business in this sector should lead to an improvement next year.
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