10th Nov 2015 09:36
LONDON (Alliance News) - Fresh potato and daffodil producer Produce Investments PLC Tuesday said it will close its packing operations in Kent in early December.
The closure follows on from its full year results published in October, when the company said a foreseeable decline in volume next year could potentially lead to its packing facility in Kent closing, after it reported a drop in profit due to challenging market conditions.
On Tuesday, the company said: "Further to the company's announcement on October 8, 2015 regarding the closure of its packing facility in Kent, the 45-day consultation period with employees has now ended. Following this consultation, the company can now confirm that packing operations will cease at the site in early December, with volumes transferring to their sites in the Scottish Borders and Cambridgeshire."
The packing facility is held under the company's subsidiary, The Kent Potato Co, which it obtained after acquiring The Jersey Royal Co for GBP15.0 million back in 2014.
The expected drop in volume in 2016 is the result of Produce Investments securing a three-year agreement at a fixed margin with a core retail customer, which would result in a reduction in overall volume from July 2016, leading it to review its packing operations.
Produce Investment shares were down 1.6% to 157.50 pence per share on Tuesday.
By Joshua Warner; [email protected]; @JoshAlliance
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