Britain’s biggest fresh milk processor plunged more than £7million into the red last year.
Accounts just released by Companies House for the 11 months to December 31 show Robert Wiseman Dairies’ milk sales were up by £100.776million in 2012 but that it ran up pre-tax losses of £7.126million. That was in contrast to the £7.551million pre-tax profit in the previous 10 months.
Operating losses at the East Kilbride-based business, now led by Dutchman Ronald Kers, were £4.739million on turnover of £880.55million. Operating profits in 2011 were £8.628million.
Wiseman was bought during the year by Germany’s Muller dairy group for £282million.
Directors blamed “numerous challenges on costs” for the losses as margins had been affected significantly over the year.
The group continued to improve margins and, as announced earlier this year, has recently shut distribution depots at Keith and Whitburn to improve operational and administrative efficiencies throughout the business.
Twenty-three posts were 23 made redundant at Keith and 116 at Whitburn.
The accounts revealed that directors at the business shared emoluments of £1.113million over the year, a fall of £421,000. Robert Wiseman also paid out £860,000 in compensation to an unspecified number of directors who lost office during the year.
The unnamed highest-paid received £921,000, which included £534,000 for loss of office.
The accounts also showed that another £2million has been ploughed into its joint venture, A2 Holdings UK. It was set up by Wiseman and the New Zealand-listed A2 Corporation to sell a protein-rich milk that could help millions who suffer digestive problems if they eat or drink traditional dairy products.
It sells only milk rich in A2 beta-casein proteins, which have been shown to either improve or alleviate symptoms linked to dairy products.
When launched last year, A2 said the market potential was 100million litres, about the same as organic.
A2 milk, produced naturally by cattle with only the A2 gene in them, has been on sale in Australia for nine years and has a 2% market share.
Wiseman said A2 continued to develop relationships with key customers and now had listings in more than 900 stores UK-wide.
The accounts disclose that Wiseman lost £2.285milion after tax on its investments, which include A2 Milk and two trading subsidiaries, Robert Wiseman and Sons and Robert Wiseman Leasing.
Overall net debt at the year-end was £61.15million, against £47.359million.
Operating company Robert Wiseman and Sons suffered an operating loss of £5.182million, compared to a profit of £11.957million.
Pre-tax losses of £4.18million were recorded against profits of £10.886million. Turnover was the same as the parent company.
The operating company paid out £1.093million in compensation to directors for loss of office.