Wholesaler in mood to grow after 'milestone' year

A wholesaler is targeting fresh takeovers after high-profile deals bolstered its progress.

Kitwave Group says it is “continuing to identify acquisition opportunities... in a fragmented” market.

Bosses say further deals would build on a “milestone year” that saw the North Shields-based national operator buy three companies and notch earnings and profit hikes.

According to latest results for the year to October 31, revealed today (Tuesday, March 4), revenues increased by more than ten per cent to £663.7 million. 

Adjusted operating profit at Kitwave Group – which last year bought family-run drinks business Wilds of Oldham, Yorkshire and Lancashire-based Total Foodservice Solutions and Cheltenham-headquartered Creed Catering Supplies – was 6.3 per cent higher at £34 million.

And Ben Maxted, chief executive, said the figures provide a platform for the business to continue its expansion.

He said: “The board and senior management team will continue to drive organic growth and monitor the acquisition opportunities available in the UK’s fragmented wholesale market.

“The execution of our growth strategy has propelled the business forward and strengthened our market position… and we continue to be well-positioned to invest in businesses that will deliver further value.”

He also said the business, which operates nearly 40 depots nationally, remains “confident in its strategy” after previously forecasting a £2 billion Budget bill following a reduction in the National Insurance threshold and rise in employers’ National Insurance rate.

He added: “Despite the implications of the Budget, we have started the new financial year well. 

“We remain confident in our strategy and the ability of the board and management team to deliver on its growth targets and generate value.”

Kitwave Group includes the drinks wholesaler HB Clark, which has depots across the North East, Cumbria, Yorkshire and Lancashire, and M.J. Baker Foodservice, in Newton Abbot.

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