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The Lakes record strong performance in latest financials

David Brass in a woods holding a hen

THE LAKES FREE RANGE EGG COMPANY has reported a significant sales increase in its most recent financial results, covering the year to 31 October 2020.

Sales were £45.8m over the period, compared with £33.5m a year earlier.

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Pre-tax profits remained broadly the same, at £1.2m, because of higher input costs, the director’s report said.

“Gross profit has increased, despite some increase in input prices in the year, which has caused gross profit margin to fall,” the strategic report signed by director David Brass explained.

“The company has continued to nurture strong relationships with its suppliers and negotiate beneficial contracts for its customers and the company.”

Covid-19

As a supplier of a staple food, directors say the company has fared ‘relatively well’ during the pandemic, with lockdowns not significantly affecting the ability of the company to trade, nor the demand for its goods.

“There was an increase in the price of eggs during the lockdown in Spring 2020, which had a negative impact on margins in this period.

“Egg prices have since fallen back, and the company has achieved strong revenue and margins in the second half of the year. The directors expect this strong performance to continue.”

Brexit

Directors said that Brexit had not had a significant effect on the company, as it does not directly export to EU countries or Northern Ireland, and all the eggs it purchases are UK-produced.