Bread firm’s profits rise

Breadmaker McCambridge’s was making lots of dough again in 2013 with pre-tax profits increasing more than four-fold to €1.68m.

New accounts show that McCambridge’s recorded the large jump in profits in spite of gross profits declining by 8% from €3.92m to €3.59m in the 12 months to the end of June 29, 2013.

The lower pre-tax profits in 2012 of €386,096 arose chiefly from exceptional costs of €1.4m that arose mainly from the waiving of a €1.25m inter-company loan. The accounts show the bill to McCambridge’s in its legal battle against rival Brennans almost tops €476,000.

McCambridge’s emerged triumphant in the case in August 2012 when a majority Supreme Court decision dismissed an appeal by Joseph Brennan bakeries against a High Court decision that Brennan bakeries had passed off its wholewheat bread as being the product of McCambridge’s.

The accounts for 2013 show that an additional €17,548 was incurred in legal costs following the €460,000 that has been incurred under that heading in prior years.

A spokesman said yesterday: “It is business as usual and the company is pleased with the introduction of both its spelt bread and low GI bread products in the market in 2014.”

Accumulated profits at the firm stood at €10.5m with the company’s cash pile reducing from €454,262 to €353,435. Numbers employed remained static at 51 with staff costs declining to €2.14m.

Remuneration, including pension contributions, for directors, Michael and Catherine McCambridge reduced from €497,725 to €420,193.

The accounts for 2013 are the last to be made available to the Companies Office as separate filings show that McCambridge’s has now secured unlimited status that does not require it to file annual accounts.

This follows a company restructuring that involved McCambridge’s share capital acquired by Gooseneck Ltd with the ultimate parent undertaking changing to the Cayman Island-based Airlock Ltd.