Tunnock’s invests £9m in record year for sales

By James Ridler contact

- Last updated on GMT

Tunnock's has invested more than £9m in its production facilities last year. Owner Sir Boyd Tunnock pictured
Tunnock's has invested more than £9m in its production facilities last year. Owner Sir Boyd Tunnock pictured

Related tags: Bakery

Scottish biscuit and cakes manufacturer Tunnock’s has invested more than £9m in its production facilities in the year ended 23 February 2019, as it reported a record year for sales.

The manufacturer – best known for its iconic teacakes – continued to invest in new plant, with capital expenditure hitting £9.67m for the year and funding a factory expansion that saw the number of biscuits produced during the period jump to 525m.

Turnover for the year grew 5.7% to £61.3m, up from £58m in 2018, the first time sales for the company broke £60m. Sales in the UK were worth £50.7m, while turnover internationally came to £10.6m ­– an increase of 5.5% and 6.7% respectively.

Profit growth

Profit before interest and tax saw significant growth, up 32% to £5.6m during the reported period.

In a statement filed at Companies House, Tunnock’s said: “We plan to secure an exciting future by remaining true to the values established by the Tunnock family and continue to invest in our plant, people and products. We continue to review the possibility of extending the products within our range.”

Established in 1890, Uddingston-based Tunnock’s manufactures iconic British snacks such as Caramel Wafers, Snow Balls and Teacakes. The factory holds organised tours for the general public, which are booked up to 12 months in advance. It is also linked to the nearby Tunnock’s tearoom.

Knighthood

Last week saw owner and creator of the teacake Boyd Tunnock (pictured) travel to London to be knighted by HM The Queen for his services to business and charity.

Meanwhile, speciality bakery ingredients manufacturer Real Good Food has posted reduced losses​ in its latest interim results, helped by refinancing deals it secured earlier this year.

Commenting on the results, non-executive chairman Mike Holt said the business had made significant progress over the past six months, especially evident within its food ingredients business, where capacity had doubled and was almost fully utilised, with strong order intake and commitments from both new and existing customers.

Related topics: Bakery, Confectionery, Operations

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