Page 39 - Fisherman's Friend Case Study

Financials

Lofthouse of Fleetwood funds its continuing expansion

from internal investment without recourse to bank loans.

In 2014 the company was expanding rapidly in China as

part of its export-focused strategy, also reported a rise in
sales with pre-tax profits of £4.2m in the 2014 calendar

year, up by 121 per cent on a year earlier. Turnover

climbed by 8% to £46.8m. This occurred as the business

embarked on a £4.7m capital investment programme
during the period, which was mainly focused on

extending and fitting out its pharma suite and blending

facility.

2015 saw profits fall by 53% to £2m. During the year, the

company made a capital investment of £3.9m into

additions to its tangible fixed assets, mainly completing
work on its pharma suite and blending facility. The

company also launched a new honey and lemon-

flavoured Fisherman's Friend throat lozenge in the
middle of 2015 and an Original Extra Strong multipack in

November 2015. (4)

By December, 2017 turnover had climbed to £51.6m up
from £51.3 in 2016. Operating profits increased by 220%

to £5.5m in 2016, largely due to the impact of exchange

rate fluctuations. Pre-tax profits climbed by 190% to

£5.8m over the same period.

During the year the company had spent some £2.88m on

additions to tangible fixed assets, mainly on further

developments to its pharma suite and blending facility.