Syston-based Pukka Pies has seen its profits hit by an increase in ingredient costs, highlighting that it’s not only private households that are feeling the pinch of food price inflation over the past few years.
The Leicester Mercury recently reported on Pukka Pies’ latest financial filing, which reveals pre-tax profits of £3.63 million in the year to May 27th 2013.
In the previous 12-month period, profits were higher at £3.74 million – but the drop has not been caused by poor sales.
Turnover for the same period has actually increased, from £40.12 million to £40.29 million, but higher ingredient costs have wiped out the potential increase in profits.
A directors’ statement said: “The company has had another satisfactory year. The trend of increasing turnover has continued again this year, with gross margin being slightly lower due to higher inflation on ingredient costs.”
The year so far has been one of change for Pukka Pies, in part due to its launch of shortcrust pies in addition to the existing puff pastry line-up, but also due to the death of its founder, Trevor Storer, in July 2013.
His sons Tim and Andrew now head up the business, keeping this local employer of almost 300 people under family control.
But with a change in leadership at a time of rising costs, the firm – like any other – is likely to be keeping a close eye on any impact to its bottom line during the coming 12 months.
At such times, maintaining consistency in invoicing procedures and finance collection is a must, to avoid giving customers any excuse to fail to pay due to claims of confusion arising from the new management.