Typhoo Tea has said its pre-tax losses continued to fall during its most recent financial year as the newly-acquired company progresses with its turnaround plans.
The Wirral-headquartered company, which has a factory in Moreton, has provided the update in accounts for its year to March 31, 2020, which were delayed in being published because of Zetland Capital’s acquisition.
Current backer Abercross also expanded its shareholding in the deal which was announced in August this year.
The documents filed by the 118-year-old company, which had been owned by Indian conglomerate Apeejay Surrendra Group, outline that a re-structure of working patterns at its Moreton factory in April 2020 resulted in 48 employees being made redundant at a cost of £1.3m.
The accounts confirm that Typhoo Tea’s pre-tax losses fell to an unspecified total in its financial year to the end of March 2021 from losses of £15.8m in the 12 months to March 31, 2020, which itself was a decrease from losses of £29.9m.
The documents do not detail the company’s revenue for its latest financial year but do record a fall from £60.8m to £53.1m for the 12 months to March 2020.
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A statement signed off by the board said: “Throughout the year to March 2021, the losses continued to reduce as the strategies employed by the new leadership began to take effect.
“More importantly, in July 2021, the business went through a transaction. This transaction involved a re-structure of the external debt of the business following a principal repayment and a change of ownership.
“This transaction significantly alters the debt structure of the business and the directors of the company are confident that [the] liquidity element of the investment will allow the business to complete the turnaround with renewed focus.
“Typhoo Tea recognises the 12 months to 31 March 2020 was a watershed for the business.
“This period highlighted the weakness in the strategy being previously adopted and as such has prompted a significant change in the strategic direction of the business.
“The board of directors remain confident that the changes introduced in 2020 will deliver significant improvement in performance and will affect the business turnaround required.
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“The directors are committed to the new strategic approach as demonstrated by the shareholder funding of the re-structuring in April 2020 and, with the continued support of the shareholders, are confident it will allow the company to recover from the year to 31 March 2020 and enable the business to go from strength to strength.”
Typhoo Tea’s rich history includes being the first brand to sell ready-packaged tea and the first tea brand to introduce a green tea blend into the UK.
Launched in 1903, the famous brand began making tea bags in 1967.
In 1978, production moved to the Moreton site from Birmingham, where it now packs 16,000 tonnes of tea each year, after receiving it from Kenya and Argentina.
In 2005, the firm was sold by Premier Foods plc to Indian conglomerate Appejay Surrendra Group.
The company is also home to a wide range of brands in the growing herbal and fruit infusion market.
The brands include Typhoo Tea, Lift, London Fruit & Herb, Heath & Heather, Ridgways, Glengettie, Fresh Brew and Melrose’s. Typhoo is also the leading own-label supplier in the UK.