Scotland’s biggest poultry processor paid nearly £38million for 11 UK red meat and poultry processing sites from the Vion Food Group in March 2013.
Accounts filed with Companies House reveal the parent company of the 2 Sisters Food Group – Boparan Holdings – paid £37.4million for the interests which include the McIntosh Donald lamb and beef processing business at Portlethen and chicken processing site in Coupar Angus.
The deal transpired after Dutch firm Vion put its entire UK business portfolio up for sale in November 2012 after incurring multimillion-pound losses.
It shut its Broxburn pig processing site with the loss of 1,700 jobs and sold the remainder of its pork business to a management team backed by private equity firm Endless.
The remaining red meat and poultry arms of the business were bought by 2 Sisters, which has since restructured its poultry operations, forcing many broiler growers in the north and north-east to cease production. In its latest accounts, the group reveals a 16% increase in turnover as a result of a strong sales performance due to “integration benefits” of the Vion takeover.
However the accounts also reveal that pre-tax losses at the group increased by 27% for the year ended August 2, 2014.
The Birmingham-based poultry giant posted pre-tax losses of £21.871million, up from a loss of £15.955million the year before.
This was against turnover of £992million, up from £855million previously. Despite increased losses, the accounts reveal the company’s highest-paid director took home a pay cheque of £627,679, up from £524,882 last year.
Exceptional costs at the firm increased by 2689% to £23.155million, from £830,000 previously.
2 Sisters said this was mainly a result of one-off costs associated with stopping production at two sites – Letham in Angus and Haughley Park in Suffolk – worth around £8.627million.
On the future, parent company Boparan Holdings, said: “The group expects the economic environment to remain tough with an equally tough trading environment with our customers.
“The group continues to focus on its costs base improving operational effectiveness and consolidating of manufacturing sites, whilst making targeted prudent investments throughout the business.”