Cakes supplier BBF has reported growth in revenues and profits despite a “challenging market backdrop”.
The business stated total revenues were £155.6m in the year to 29 June 2019, up from £98.1m the previous year, in its latest filing at Companies House.
The hike was largely down to revenue from the Hull-based cakes and desserts business acquired from Greencore in 2018, although BBF also reported underlying organic growth of 8%. It said this would provide strong foundations for further investment and growth.
BBF described the retail bakery market as “highly competitive”, adding that although raw material inflation had moderated slightly over the period, the weakness of sterling had driven net costs higher.
Despite this, it reported EBITDA almost doubling from £4.5m to £8.7m, and operating profit up from £2.1m to £6.2m. The business reduced its net debt by 30% to £17.2m.
BBF said it had also improved service levels, boosted operational labour utilisation and waste reduction, and continued to invest in operational efficiency.
“This has been a highly successful and transformational year for the group and the positive figures are testament to the strong teamwork we have achieved right across the business,” said BBF CEO Jonathan Lill, who is part of a management team brought in by private equity firm Endless after it bought the business in 2015.
“We have delivered substantial operational turnaround improvements in our recent bakery acquisition in Hull and have successfully integrated the management of the site with the existing BBF business.
“BBF continues to build on its solid platform for revenue growth with customers, both in the UK and internationally. We retain a broad customer base and continue to make great service, product innovation and quality our top priorities in order to drive growth across a range of products.”
BBF operates four bakeries across the north of England and one in Poland, and has offices in Blackburn and Hull.