Greenvale sees turnover rise, profit drop

A Scottish potato producer that supplies Birds Eye, McCain and Tesco has unearthed a 10 per cent rise in turnover in its maiden results as a listed company.

Revenues at Duns-based Produce Investments grew to £171.4 million in the year to 25 June, boosted by higher spud prices.

But those same rising prices also hit the group when it had to buy in potatoes from other growers to fulfil contracts, triggering a drop in operating profits to £6.4m from £7.7m

Bottom-line profits fell to £2.6m from £5.6m after the company booked nearly £2.8m in costs relating to its flotation on the Alternative Investment Market (Aim) in November.

Yet joining Aim allowed the company - which trades through its GreenVale subsidiary - to raise £15.6m, letting it pay down its debt to £8.1m from £25.2m and giving it a warchest to make acquisitions.