A Scottish dairy firm has posted a multi-million pound loss for the 11 months to the end of 2012, just months after it was taken over.
Citing ‘numerous challenges’, Robert Wiseman Dairies’ records showed a pre-tax loss of £7.1 million. This came despite operating revenues rising by more than £100 million previously.
The East-Kilbride company, which was taken over by Muller Dairy for nearly £280 million in early 2012, previously reported a profit of £7.5 million in the last financial period.
When sending the results to Companies House in mid-September, the firm said:
“Despite an increase in revenue in the prior period, the 11-month period to 31 December 2012 has presented numerous challenges on costs which have significantly impacted our margins for the current period.”
In the statement, the company went on to say that work to better the margins was continuing.
The group has also recently decided to close two distribution depots in Scotland. Already winding down operations, the facilities at Whitburn and Keith are scheduled to close before December of this year.
The dairy industry has been rocked over recent years, and faces the challenges posed by farmers demanding greater payment for the basic product.
Other firms facing challenging conditions have taken steps to reassess their finances, with many using invoice factoring to help.
For the dairy, a greater emphasis on extending volumes being delivered and winning more tenders is the priority.
The firm says that it continues to develop relationships with its core body of clients in order to boost supply.