A Dundee firm which processes an eighth of the UK’s pea and bean harvest at a city refrigeration plant saw its profits halve during “one of the worst seasons in living memory” last year.
Newly-published accounts show Gourdie Industrial Estate-based Dundee Cold Stores, a major supplier to Birds Eye and other leading frozen food companies, saw turnover fall 16% to £4.6 million and pre-tax profits collapse 51% to £627,000 during 2012.
The rotten growing season followed a similarly poor harvest the previous year, leaving the jointly-owned farmers’ consortium well down on historic performance levels. But hopes of a better 2013 have sweetened the results, with a company spokeswoman revealing fresh investment and a “fantastic turnaround” in fortunes over recent months.
“In 2012, growers experienced one of the worst seasons in living memory which clearly impacted on the volumes processed by the factory. However, we maintained an acceptable level of production throughout the year,” she said.
“We continue to invest profits back into the business for future growth and the coming year will see the delivery of a £0.5m refurbishment programme at the plant.
“The 2013 season, despite a cold and wet spring, has had a fantastic turnaround due to a prolonged warm and dry summer allowing an uninterrupted harvest, albeit exceptionally busy.”
The fresh investment is just the latest to be made at the plant since it was bought out of administration in 2007.
It typically processes more than 20,000 tonnes of peas and beans the equivalent of 12% of the UK’s total harvest per year, and boasts that the time between picking and freezing is no longer than 150 minutes.
Produce is drawn from more than 300 farms locally, and at the height of the harvest the facility can provide work for as many as 130 seasonal staff in addition to the full-time employee base of around 25 staff.
DCS employed a monthly average of 51 staff during 2012, down slightly on the previous year. Overall wage costs rose marginally from £1.19m to £1.21m.
Interim dividends totalling £900,000 were paid to shareholders WP Bruce Ltd and East Coast Viners, but the company stressed that the board continued to ensure the long-term growth of the firm through sustained investment in growing capacity during “difficult” economic times.