Wed, 06 Mar 2024 | ADMINISTRATION
UK Salads Limited, a major UK producer of salad items, has fallen into administration and ceased trading. The company collapsed following a period of challenging trading, with approximately 200 staff made redundant as a result.
The firm was founded in 1992 and based in Harlow, North East London. It supplied major UK retailers, including the UK business of German discount supermarket Aldi, with products including cucumbers, tomatoes, peppers and aubergines.
While the details of the company’s struggles have not been disclosed, the UK’s fresh produce sector has been hit by headwinds including energy, transportation and labour cost inflation, as well as post-Brexit issues such as supply chain disruption and labour shortages.
FRP Advisory partners Alastair Massey and Glyn Mummery were appointed as joint administrators to the company on February 28. Speaking to food industry publication Just Food, the joint administrators described the company as "a well-established growing, packing and importing company supplying to major retailers, wholesalers, catering and the public.”
The joint administrators said that “challenging trading conditions” had left the company “unable to meet its financial obligations”, leading to it falling into administration and ceasing trading. They added that they were now considering the options available to the business and “exploring interest from a number of parties.”
Its most recent accounts at Companies House cover the year ending October 31 2022. During that period, the company saw its turnover increase from £51.1 million a year earlier to nearly £69.2 million, while operating profit increased slightly from £725,483 to nearly £790,000. Net profits, however, fell significantly from £854,177 in 2021 to £467,578.
Despite strong turnover growth and resilient operating profit, the company said in the reports it was “facing significantly increasing high costs and turbulent market business conditions.” At the time, its fixed assets were valued at close to £2.6 million and current assets at £22.4 million, with net assets amounting to £10.3 million.
Read more about high insolvency levels in the UK food sector
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