OUR UK LOCATIONS
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Caledonian Produce
West Lothian
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Melrow Salads
Merseyside
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Hitchen Foods
Wigan
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Yorkshire Fresh Fruit
Selby
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New Primebake
Barton-on-Humber
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New Primebake
Nantwich
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New Primebake
Crewe
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Welcome Foods
Huthwaite
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Laurens Patisseries
Newark
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Bakkavor Spalding
Spalding
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Freshcook
Holbeach St Marks
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Cucina Sano
Boston
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Bakkavor Meals
Sutton Bridge
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Wingland Foods
Sutton Bridge
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Bakkavor Pizza
Holbeach St Marks
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Bourne Prepared Produce
Bourne
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Bakkavor Meals
Park Royal
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Bakkavor Meals
Elveden
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Anglia Crown Ltd
Colchester
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Tilmanstone Salads
Dover
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Bakkavor Meals
Wembley
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Bakkavor Pizza
Harrow
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Alresford Salads
Alresford
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Isleport Foods
Highbridge
SEGMENT DESCRIPTION
Our UK businesses primarily manufacture private label fresh prepared food products
on behalf of all major grocery retailers in the UK.
FACILITIES
We operate 32 facilities and employ 15,440 people.
MARKET POSITIONS
We have over 40 years' experience in the UK and and enjoy leading or number
two positions in all of the 16 market categories in which we are present. We
estimate our consolidated market share across the categories in which we
operate in the UK is close to 30% and two times larger than that of our nearest competitor.
SALES PERFORMANCE
Our UK segment generated revenue of £1,407.0 million in 2012, 83% of Group revenue and a 1.4%
increase on 2011. On a like-for-like basis however, we were pleased to deliver 5.5% growth in
the year and 10.2% in the final quarter. This level of growth, which was ahead of the market,
was due to the successful delivery of a strong seasonal offering and was supported by our
capital investment strategy over the past two years and increased spend on innovation. This
strong revenue performance also delivered double digit growth in adjusted EBITDA.
With regards to the full year, growth was almost entirely driven by increased volumes from
promotional activity and new business. This was achieved despite a number of adverse factors,
including subdued consumer spending and unusually poor weather throughout the spring and summer
which impacted the sale of cold eat products.
ADJUSTED EBITDA PERFORMANCE
Adjusted EBITDA for the UK was £104.2 million, compared with £100.6 million in 2011, an increase
of £3.6 million or 3.6%. Adjusted EBITDA margin increased by 20 basis points to 7.4% in 2012 as
the UK benefited from increased sales and improved factory efficiencies, effective promotional
management and factory efficiencies. This growth was also underpinned by the successes of our
capital investment strategy in the past two years and increased spend on innovation.
KEY INNOVATIONS AND ACHIEVEMENTS IN 2012
Raising the benchmark for innovation within the industry is an integral part of our Group strategy
as we focus on attracting consumers and stimulating sales. We created and launched over 1,300
products into the UK market during 2012 and won 11 industry food awards in recognition of our
product development expertise.
In the UK our innovation pipeline was strong throughout the year as a direct result of targeted
capital investments in key categories. In soups we extended our highly successful New York Soup
Co range. Investment in our pizza category led to new business, including a major new range for
one of our key retailer customers. Our investment in salad leaf processing technology further
strengthened our market position.