Cheese exporter Somerdale International profits up
Profit before tax increased to £634,532/$840,399 (2019: £192,155/$254,498), while turnover increased 9% to £41.9m ($55.5m).
Somerdale’s US sales reached the $25m mark for the year to the end of March 2020, up some 17% year on year. This record sales figure was boosted by growth in the retail sector reflecting Somerdale’s continued focus on innovation and continued growth in its core product range.
The company said its sales now represent about 20% of all UK cheese exports to the US, with growth over the past two years of 41%.
Total net assets have increased further to just under £1.4m ($1.85m) and current assets have improved by £350k ($463k) from the last year end.
In the current financial year, half year sales were 6% higher year on year and will be reinforced by, what so far is, a strong US holiday season trading performance. This is despite the impact of the Covid-19 pandemic, the ongoing US tariffs and uncertainties relating to post Brexit trading arrangements.
Trevor Debenham, finance director of Somerdale International, said, “During the 2019/20 financial year the business performed in line with expectations. Turnover and profitability both grew, helped in no small part by record sales in the US – our largest and most important market. This was despite the unprecedented challenges linked to the imposition in October of the US super tariffs; uncertainties regarding Brexit and, towards the end of the year, the emergence of the Coronavirus pandemic.
“In the current financial year, when we are celebrating our 30th year as a business, it is pleasing to be able to report that our trading has been, and continues to be, very buoyant. This reflects, I believe, the fundamental strength and agility of the business; our ongoing focus on developing strong, long term and mutually beneficial relationships with customers, suppliers and distributors; and investing for the future in both our export capacity and capabilities and in the development of exciting and truly innovative products and brands that will meet the needs and desires of international consumers.”