Kitwave Group 'delighted' - but flags £2 million bill

A wholesaler says it remains primed for expansion – but has warned it faces a £2 million Budget bill.

Kitwave Group has hailed “another excellent year…of robust trading”, with bosses cheering market demand and a trio of headline takeover deals that have laid a “platform for growth”.

But the North Shields-based national operator also cautioned it will be checked by Government Budget moves.

It says the hike – forecast to reach around £2 million following a reduction in the national insurance threshold and rise in employers’ national insurance rate – will be tackled through “efficiencies and other savings in the current financial year”.

However, speaking in a pre-close trading update for the year to October 31, released today (Thursday, November 7), officials say they remain upbeat, hailing the impact of the business’ “buy-and-build strategy” that added Wilds of Oldham, Total Foodservice Solutions and Creed Catering Supplies to its stable in recent months.

Ben Maxted, chief executive at the company, which operates nearly 40 depots nationally, said it has made good progress, and refused to rule out further acquisitions.

He added: “I am delighted Kitwave continues to make significant financial and operational progress.

“We are particularly pleased to have completed three acquisitions in the period, taking our total to 15 since 2011.

“The trade from Wilds of Oldham and Total Foodservice Solutions has now been integrated into the group in line with plans, while we expect both trade and operational efficiencies from the Creed acquisition to start being realised in the 2025 financial year. 

“Our platform for growth remains strong.”

Kitwave Group includes the drinks wholesaler HB Clark, which has depots across Yorkshire and Lancashire; Miller Food Service, in Hull and Dunnington, on the outskirts of York; and M.J. Baker Foodservice, in Newton Abbot.

Looking to promote your product/service to SME businesses in your region? Find out how Bdaily can help →