Genesis Crafty Bakery losses revealed

Genesis Crafty Bakery losses revealed

NR recently reported that bakery business McErlain’s went into administration due to trading difficulties. There have been several further developments which shows the extent of the strain which the Genesis Crafty Bakery producer was under.

six brothers who helped operate
Genesis Crafty six McErlain brothers who helped operate the family business.

The producers of Genesis Crafty Bakery products, which supply a vast array of outlets in the UK has revealed of nearly £640,000 in the year to October 2017 before it was put into administration and bought over

The loss compared to pre-tax profits of £484,000 for the year before.

Overall the company owed at least £4.3m to other companies. A frustration felt by all involved.

The Magherafelt company was put into administration last month and sold to investor Paul Allen – also the head of Tayto Group – after facing trading difficulties exacerbated by the rise in raw material costs, including butter.

The accounts for the year ending October 29, which were signed off in December, reveal an increase in net sales of 6.3 per cent to £17.2m. However, gross profit margin had fallen from 40 per cent in 2016 to 33.2 per cent.

Directors also expressed confidence in the future in the report, writing: “The directors anticipate that 2018 will increase turnover to £23m due to new contracts, new product lines with existing customers in addition to maximising their potential in specific target areas.”

A spokeswoman for the administrators, EY, confirmed to Neighbourhood Retailer: “that the resolutions were approved at the creditors meeting this morning.”

What next?

New developments have also shown that creditors have voted to accept a deal that could see them paid as little as five pence in the pound.

The biggest losers include dairy co-op Dale Farm, which was owed £641,052.

Other major creditors include Belfast-based Industrial Temps, which is owed £252,579, Lisburn company Andrew Ingredients Ltd, owed £238,353, Co Fermanagh company Ready Egg Products, which has an unpaid bill for £170,040, and Draperstown firm Heron Property owed a total of £155,372.42.

A report seen by The Belfast Telegraph showed that almost half the proceeds of the sale of McErlain’s (£915,000) were paid to Danske Bank, leaving £939,313 which was transferred into the administration bank account.

What happens next is yet to be seen, but it is sure to be an on-going case when it comes to the Genesis Crafty saga.