Produce Investments (Greenvale AP) reports 26.6% profit increase

Potato farming and supply firm Produce Investments Plc (Greenvale AP) has reported a 26.6 per cent rise in annual pre-tax profits to £7.6 million.

The Duns-based company reported a £1.2 million pre-tax loss for the first half to December 29, 2012 after being forced to raise costs after recording the “lowest yielding and poorest quality crop since 1976”.

The group said the results reflect a “high priced season” which was the result of unusually wet weather throughout the 2012 year, which had also seen crop waste levels rocket.

This led to potato prices rising to “exceptionally high” levels with additional imported tonnages having to be sourced to fulfil UK market requirements.

Produce Investments, the parent company of potato supplier Greenvale AP Ltd, supplies to the likes of Tesco and Sainsbury's.

In a final results announcement for the 52 weeks to June 29, 2013, the group said revenues rose nearly 34 per cent on the previous year to £206 million (2012: £153.9 million).

Operating profits rose to £7.5 million against £7 million the previous year.

Shares in Produce Investments rose more than three per cent on the results announcement.