Lloyd Fraser wins deals despite turnover drop
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By Chris Druce LLOYD FRASER Holdings saw its turnover tumble by 30% in 2010 after the loss of two major deals, but a slew of new wins since has improved the outlook for the irm.
The Rugby-based company saw turnover fall to £50.2m (2009: £69.7m) in the year ended 31 August 2010, according to newly published accounts at Companies House, as the full impact of Travis Perkins’ decision to take distribution for its Wickes business in-house hit home. The collapse of the Dairy Farmers of Britain co-operative, a long-term customer, reduced turnover even further.
However, the transfer of staff to Wickes under TUPE regulations nearly halved headcount to 631, and with the cost of sales signiicantly reduced, operating proit almost doubled to £1m (2009: £544,584). Pre-tax proit recovered to 2008 levels, up 46% to £981,429 (2009: £674,210).
However, Mike Dennis, marketing manager at Lloyd Fraser, says the irm has landed a £30m multiyear deal with an unnamed fashion retailer, and a second contract with another, since the start of this calendar year. In February, Lloyd Fraser revealed it had won a ive-year contract to collect and distribute fresh milk for Milk Link.
Dennis says 2010’s headline igures mask growth in the irm’s retail and milk interests. “We have a broader customer base than before with our fashion business, which is growing fast. We also work with a lot of the dairy farmers that were in the co-operative, as well as many others such as Arla and First Milk.”
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