Britain’s biggest egg company - Noble Foods Group - posted a multi-million-pound loss in its last tax year, according to accounts lodged with Companies House.
The group recorded a pre-tax loss of nearly £7 million in the year to the end of October 2020 after the value of its assets were written down by nearly £9 million.
The accounts show that a revaluation of freehold land and buildings wiped £8.98 million off Noble’s profit and loss account.
The group made a loss before tax of £6.47m compared with a pre-tax profit of £5.23m during the previous year. Turnover was only slightly down - from £331m in 2019 to £312m in 2020.
Despite the loss, the company said the results were as expected. “The directors are pleased with the results for the year,” said Noble in a strategic report included in the accounts.
“The after tax loss of £7.0m (2019: profit of £4.1m), stated after losses on revaluation of fixed assets of £9.0m (2019: £nil), on turnover of £312.4m (2019: £330.7m) are as expected. The group has net assets of £39.4m (2019: £45.8m).
“There is continuing competitive pressure, which always drives us to reducing our costs and improving out efficiencies,” said the group.
It pointed out that, during the previous financial year, Noble had disposed of its interests in its US subsidiary. This was completed in March 2019.
On the future of the UK business, the directors said in their 2020 strategic report that they expected “the general level of activity to remain consistent in the forthcoming year.”
The report said: “The directors’ focus will be to improve margin and grow profit, whilst ensuring the cost base continues to remain appropriate for the business.
“The directors are actively monitoring the impacts of the UK’s withdrawal from the European Union and the recently agreed UK-EU Trade and Co-operation Agreement may have on the group.
"However, given the group is predominantly UK based with a well established workforce, the directors don’t believe there will be significant supply chain, workforce or other issues as a consequence.
“The directors also continuously monitor the impact of Covid-19 and associated lockdowns on both the operation and commercial performance of the group."
Noble Foods still dominates supplies of eggs in the UK, although its share of the market has slipped slightly.
Latest figures assessed by the British Free Range Egg Producers’ Association (BFREPA) showed that Noble accounted for 25.11% of class A egg supplies - 15 points ahead of its nearest rival.
