Cereals firm reports profits fall

By Michelle Perrett

- Last updated on GMT

Silvery Tweed Cereals mills, blends and costs a wide range of cereal-based ingredients
Silvery Tweed Cereals mills, blends and costs a wide range of cereal-based ingredients

Related tags: Wheat

Silvery Tweed Cereals has reported a drop in turnover and pre-tax profits, citing price pressures as a factor.

The Northumberland-based company saw turnover fall to £18.9M for the year to April 30 2017, compared with £20.4M for the previous year.

Pre-tax profits fell to £605,992 from £730,529 the previous year.

The Berwick-upon-Tweed family-owned business specialises in premium-quality cereal and seed ingredients.

Volume drop

In its results the company announced a 4% drop in volume through the business, combined with a lower cost for raw materials.

The company said the level of business had been stable for a number of years despite “difficult trading conditions​”.

It had focused on a small number of established customers and was “aware of the potential risk of this strategy​”. But it said the customer base had remained loyal to the company and, combined with strong working relationships, the directors considered the strategy “low risk​”.

However, it admitted there was pressure to remain price-competitive within its existing customer base.

“Despite the low risk, the company has increased the sales department headcount and will continue to develop new sales leads and customers, with a view to reducing the risk of over-reliance on a small number of key customers,” ​it said.

Continuous improvement

Silvery Tweed Cereals added that it would continue to invest in ongoing improvement activities to enable the company to become more profitable.

Last year, the company completed a £250K upgrade to the cooling equipment at its Berwick-upon-Tweed plant.

Its principal activity is the milling, blending and costing of a wide range of food ingredients, including barley, wheat, spelt, rye, oats, rice, maize, granola, muesli and seeds.

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