LJ FAIRBURN AND SON grew turnover and profits in its latest financial results, but say a challenging egg market has made sales more difficult.

The firm posted pre-tax profits of £1.9m in the year ended 30 September, with revenues of £86.6m.

That compares with sales of £80.9m in the previous period and a £1.3m profit. The gross profit margin decreased from 9.1% to 8.9%.

The directors’ report says after a strong first six months, the egg sales market “became more difficult”.

Open market prices fell because of oversupply, it adds, which affected the price of seconds and small eggs.

“In the next financial year, the oversupply of free-range eggs and mismatch between large and medium egg appears set to continue, and we will focus on adapting our business accordingly,” it adds.

The report also says that Fairburn’s underwent an investment programme to increase rearing and production capacity – and planned to continue that investment into the next financial year.

It mentions a “major refinancing” of the business, which took place in November 2018 “to take the company through its next stage of development”.