Family firm Brace’s Bakery has reported a profit rise of 29% taking pre-tax profits for the year to £1.2m.
The rise came despite the Crumlin-based company investing £2m at its Rogerstone bakery.
The figures were recorded in accounts filed at Companies House for the year ending September 30, 2013.
According to the documents, the profit represents a 29% jump on the previous year. Operating profits increased by 1% to £10m.
Turnover was also up by 2% to £35.9m over the same period.
A report filed with the accounts states: “The company has had a successful year of trading with turnover for the year increasing from £35.4m in 2012 to £35.9m and gross profit increasing from £9.9m to £10m.
“During the year, significant investment (£2m) has been made in the Rogerstone site. Despite this, the company’s cash position has improved from £978,000 in the prior year to £2m.”
Director Jonathan Brace said the results were a welcome boost after the company bought the Rogerstone site from a competitor in December 2010.
He said: “We had a tough time after that and took on some debt to purchase it and it’s been a bit of a struggle. We’re back on an even keel now and have managed to obtain new business.
“As with any company with fixed overheads, the more business we put through the better.
“We are really pleased with the results.”
Mr Brace said the Rogerstone bakery underwent a complete revamp to modernise machinery and improve the layout of the factory.
The Brace family has been baking in South Wales since 1902 and has two other bakeries on the Croespenmaen and Pen y Fan industrial estates.
Company director Jonathan Brace and his elder brother, Managing Director Mark, are the fourth generation of the family to head the business.
The profit results top a year of success for the family.
Chairman Colin Brace, Mark and Jonathan’s father, was presented with an OBE last year for services to baking and the South Wales community.
The company employs around 300 members of staff and produces 70 million loaves a year.
The company is also active in the community and recently announced a sponsorship deal with Oakdale’s under 18s football club.
I welcome fantastic news like this. They just need to focus on English expansion now.
I would add, £35.9m turnover and only £1.2m pre tax profits suggests an inefficient operation and high production costs. The food industry is said to be one of the most profitable…