Middleby UK’s turnover rose a healthy 32% in 2016 as its customer base expanded significantly in the wake of a move to new premises and warehouse facilities, but the growth was dampened by a full-year loss for the business.
Sales at the firm, which manages brands such as Houno, Pitco and Blodgett in the UK, increased from £10.5m in 2015 to £13.9m last year, financial accounts filed with Companies House this month reveal.
Directors of Middleby said the increase in turnover was due to increased demand from its existing customer base combined with a number of new customers and new brands coming on board.
They also said that special promotions offered on slower moving models helped to increase sales volume during the year.
The business reported a gross profit of £1.17m compared with £1.87m the year before, but ran up an overall loss of £689,260 compared with a profit of £5,506 in 2015.
Directors of Middleby UK said a reduction in margin was down to worsening exchange rates with the company purchasing a large proportion of its product in US dollars and the varying mix of sales during the year.
Middleby moved to purpose-built premises in Wigan two years ago and bosses said the move has encouraged blue chip companies to visit its purpose-built demonstration kitchen, which features a large range of commercial kitchen equipment.
The enlarged premises have allowed Middleby to carry high volumes of stock and expand stock availability. Its stockholding at year-end increased by more than £666,000, according to the report. The increased warehouse space is also helping to promote Middleby’s ‘Kitchen of the Future’.
With regards to future developments, the directors said that the business and strategic objectives of the company include breaking into new market places with existing and new product lines, such as the New Viking Domestic range, and to make full use of the new demonstration kitchen and purpose-built European Centre of Excellence, which will increase sales and profitability.