Wholesale group Kitwave said trading has returned to pre-pandemic levels but has posted a drop in revenues in its first full year results as a listed company.
The North Shields-based firm has reported revenues of £380.7m for the year ending October 31 2020, down from the £592m recorded for the previous 18 months. Adjusted operating profit also fell from £16.5m in the previous financial period to £7.1m.
The company is recommending a final dividend of 4.5p per share following a listing on the AIM market last May which raised £64m for the company and £17.6m for selling shareholders.
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It said the past year had been challenging for many of its customers due to Covid restrictions, but it had seen trading levels return in the second half of the year.
It is now returning to its buy-and-build strategy, which saw the acquisition of South West firm MJ Baker after the year end. It is also working on a new warehouse in Wakefield, Yorkshire, having opened a distribution centre in Luton during the year.
Kitwave chief executive officer Paul Young said: “It gives me great pleasure reporting on the first 12-month period since the company’s listing on AIM in May 2021.
“While this year has been particularly challenging for our independent customers, who have been forced to close or operate in a reduced capacity for sustained periods of time as a result of Covid-19 restrictions, it is clear that we are nearing a return to some form of normality. The majority of our customers have successfully guided themselves through the perils that the pandemic brought upon us and, as a result, trading, which was heavily impacted in the first six months of the year, has returned to pre-pandemic levels over recent months.
“The division least impacted by Covid-19 restrictions was our frozen and chilled division which remained extremely resilient and operated close to pre-pandemic levels throughout the period. Each of the group’s ambient, frozen and chilled and foodservice divisions, however, experienced some degree of disruption during the period.”
He added: “With the worst of the adverse effects brought about by Covid-19 now behind us, and barring any further lockdowns, the outlook for Kitwave is a positive one.
“The board continues to focus on capitalising upon the UK’s fragmented grocery and foodservice wholesale market and generating value for the group and its shareholders through operational efficiencies, organic growth and further acquisitions. The current year has started well and we look forward to providing further updates on our progress in due course.”
Kitwave was formed in 1987 after the acquisition of single wholesaler in North Shields specialising in confectionery. Through a series of acquisitions, it now has more than 1,000 employees and a network of wholesale depots around the country that supply a wide range of food, alcohol and tobacco to around 38,000 shop owners.
