New Britain Palm Oil needs more investment to grow
NBPOL, which reported a £44.1M year-on-year rise in profits last year, is currently at the centre of a £1bn takeover bid by the Malaysian-based palm oil producer Sime Darby Plantation. However, the firm will need investment if it is to continue to grow, said Adam Thomas, NBPOL’s head of technical and bakery sales.
“We’re reaching a critical point this year where we need to invest to take the business on to the next level,” he said.
Capacity at NBPOL’s Liverpool refinery was doubled to 300,000t at a cost of £10M in 2012 and it is planning another 150,000t of capacity involving investment running into millions of pounds, said Thomas.
“There has probably been £40M invested in the Liverpool site in total,” he added. “We’ve got some new contracts on the radar and would need more investment to boost capacity to continue our growth.”
Main UK biscuit manufacturers
The company was currently supplying all of the main UK biscuit manufacturers, but wanted to target other bakery businesses to expand its bakery portfolio, Thomas said. “Bakery is the area where we see growth,” he added.
“We’ve also increased our product portfolio to make sure we can compete with the other big players, by ensuring we can product match,” said Thomas.
Meanwhile, NBPOL’s shareholders were urged by the firm’s board to accept Sime Darby’s offer of £7.15 a share in October 2014. If the European Commission approves the acquisition, it is expected to be completed later this month (January), Thomas said.
However, if the takeover failed to materialise, Thomas was confident another buyer would be sought quickly, “as other companies had expressed an interest”, he added.
