Consumer goods company Kitwave Wholesale Group is enjoying a record year in its 2017 financial results, aided by successful refinancing.
The North-east based group’s management team completed a refinancing deal which involved the business raising funds from US investors Pricoa Capital Group and Allstate Investments for a minority stake. Kitwave, which owns a string of wholesale businesses including M&M Value Limited, Eden Farm, and Turner & Wrights, saw its turnover grow from £260 million to £296 million for the year ending April 2017.
The funding, along with longer-term money from Barclays and Yorkshire Bank, is in place for the next seven years and will allow Kitwave to pursue its core acquisition strategy having recently bought Phoenix Frozen Foods and HB Clark.
David Brind, chief financial officer of Kitwave Wholesale Group, said: “The group continues to deliver growth in revenue, margin and profitability whilst ensuring strong cash generation is maintained and this trend is expected to continue in the foreseeable future,” he added.
“It is fundamental to our strategy that we maintain a flexible platform from which to operate and that includes our financial structure that is always kept at longer term serviceable levels.
“Whilst some exceptional costs have been incurred due to the refinancing project the sustainable future performance of the group will be very strong. The result for April 2017 reflects this very strong operational and cash performance, and we expect to see the full benefits of the recent acquisitions in the 2018 results.”
Kitwave employs over 1,000 people across the UK with more than 250 based in the North East.