Chip manufacturer Seabrook Crisps returns to profit

Snacks firm Seabrook Crisps is hailing the success of a turnaround programme which saw the company bounce back into profit last year.

They are anticipating further growth in a highly competitive marketplace through targeted marketing of the Seabrook brand and a series of new product launches.

Latest accounts at Companies House show that the family-owned business converted a £430,000 loss in 2012 into a pre-tax profit of £1.64 million in the 12 months to March 30, with turnover rising to £24.5 million from £22.8 million.

Seabrook said profitability continued to increase as the year progressed and as cost savings extended into every aspect of its operations. The company said that, in spite of significant cost increases affecting the majority of its material costs, it managed to remain profitable month on month throughout the year.

In its strategic report, Seabrook states: “The business has been through a turnaround and the positive results are now fully evident. “ if we can grow turnover to £35 million in next two years it not only secures 150 jobs, it gives us an opportunity to create additional work opportunities locally.”

“The creation of a sustainable, scalable business, appropriately structured for growth, represented the first phase of the turnaround but the development of the brand will enable additional growth and create a further step change in profitability.

“The board are aware of the continued tough trading environment but are confident that the business is well placed to meet these challenges, positive movement within our core markets and a conservative approach to managing the risk in this area means we have cost certainty throughout 2014/15.

“This conservative approach to risk, a higher grip on operational and administrative costs, significant momentum within our core products and three new launches in 2014/15, should culminate in an exciting and prosperous year ahead for the business.”

Seabrook said it would build on the platform created in the past year to further leverage what is already a “successful, well established and loved brand.”

In June Seabrook Crisps officially opened a new £300,000 production facility at the Duncombe Street factory which employs around 150 people.

New lines being introduced include straight cut crisps, the UK’s first lattice crisps and a sticks snack. It was the first phase of an investment programme to help increase Seabrook’s turnover to £35 million over the next two years .

Jonathan Bye, chief executive, said Seabrook had the ambition was to become the number one challenger to the dominant brand, Walkers.

He said: “It’s a David and Goliath situation and we could never match Walkers in size but we do have the advantage of being able to make decisions and act quickly to meet market demand and have a flexible approach."