Glasgow depot costs hit David Price Food Services
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N F.WCASTLF.-BASED David Price Food Services slipped into the red at the close of its last financial year after it took over the full running of a cold storage and distribution depot in Glasgow. previously run by DHL.
The company saw its turnover rise by 11% to £11.2m —from £10m in 2008 — for the year ended 29 August 2009, but a pre-tax profit of 1280,319 turned into a pre-tax loss of £95,967.
Director David Price says the loss was "entirely due to the costs incurred through the Glasgow depot purchase". and adds that revenue has remained strong, despite the recession.
The directors' report says the purchase of the Glasgow site was part of its strategic plan for developing a national next-day delivery service for the IIK and Ireland and the one-off costs incurred contributed to a loss in the period.
'Hie directors stress that the core business at David Price Food Services continues to trade reasonably well, with sales increasing by 11.1m, hut adds that gross margins proved difficult to maintain, falling from 11% io 8%.