Profits slip at Fowler Welch despite growth

Fowler Welch, which provides logistics services to the food industry, increase sales by 11 per cent to £80 million in the first half, but operating profit fell from £3.5m to £2.3m.

It said that operating margins were impacted by later than planned delivery of new ambient contracts and a £0.4m bad debt write -off in relation to a customer that went into administration.

During the first half, the business completed the extension of its Teynham facility, adding some 50,000 square feet of capacity, and the expansion of its joint venture fruit packing business, Integrated Service Solutions. In June, the business agreed a contract with Dairy Crest to take over its Nuneaton based UK distribution.

Parent group Dart increased revenue by 21 per cent to £1.2 billion while operating profit was up 14 per cent to £168m.