Boughey Distribution has set out plans to consolidate operations at its main site at Wardle after operating profit fell to £1.4m in the year to 31st May from £3m in 2012.
Parent group NWF said: “Performance was impacted by tough market conditions with spare storage capacity throughout the year.”
The business had spare storage capacity during the year and while there were some small account wins, the storage volumes were largely unchanged from the start of the year. Service levels reached 99.7 per cent from 99.6 per cent the year before.
Boughey’s revenue fell by 14.2 per cent to £36.4m. Storage overall was at an average of 95,000 pallets (2012: 105,000 pallets).
The company plans to consolidate activities at the Wardle site to reduce the trunking required in the business and make full use the Wardle facility to improve operating efficiencies.
The leased Deeside facility, which has a lease break at the end of the next financial year, is under review.
Once consolidating stock has been transferred to Wardle, the Deeside facility will only be use for excess stock. It is intended to redeploy all staff from Deeside to Wardle.
Good performances in the Fuel and Feed divisions meant the group saw operating profit rise 54 per cent to £9.7m on sales up marginally at £545.8m.
NWF chairman Mark Hudson said: “Progress to date in the new financial year has been in line with the board’s expectations with all divisions performing as planned. We continue to focus on development opportunities, both organic and through targeted acquisitions.”