Three years of disruption for manufacturing culminated with unprecedented supply chain inflation in 2022, impacting the results of Aston Manor.
3 Minute Read
31st August 2023
Whilst turnover nudged up from £139m to £142m for the year to 31 December 2022, earnings before interest, taxes, depreciation, and amortisation were slightly down from £5.7m to £5.4m – noted as a creditable performance in the commentary supporting the annual results.
That records, “The quality of our response was informed by a clear strategy and was possible because of the capability that exists in all part of our business, both in terms of our processes and the quality of our people.
“Though, we are not complacent, and we continue to invest in leadership and people development as well as our capital equipment and resources.
“During the year we continued to trade effectively and made progress on our strategic objectives, including the development of new products in a range of categories.”
The considerable price increases in materials, logistics, and other costs prompt an almost immediate adverse impact on manufacturers, including Aston Manor. Whilst the business moved to mitigate this challenge with some success, overall financial performance was impaired.
Chief executive Gordon Johncox commented: “During 2022 and since, we have continued to develop our contract packing operation and our ability to produce non-alcoholic drinks for customers.
“We remain committed to making investments in our production capability and capacity to support our ambition to participate in profitable sectors, exiting low margin business, alongside providing exceptional product quality and great service. We achieve this by the expert allocation of resources to uphold our track record of outstanding continuity of supply to both our customers and their consumers.”
Johncox added: “Clearly, we hope for less disruptive trading conditions now and into the future, though we continue to pay close attention to inflationary pressures on input costs and the impact of higher interest rates.
“We are also very aware of how the regulatory environment can influence our operations and performance. The introduction of a new duty regime at the start of August has added both cost and complexity to our business – in both instances, counter to the claims made by the UK Government.”
Highlights noted for the last full trading year include a record volume of apples pressed at the Aston Manor Cider Mill at Stourport-on-Severn and ten national awards for product quality.
Progress was also made on becoming even more sustainable – an ambition that has received attention and investment over several years.
During 2022 this work included the successful installation of two Nitrogen generators, one at the Aston site, and a second Nitrogen generator for site at Tiverton in Devon. This has reduced the volume of CO2 required by the business.
Further, in a landmark move, Aston Manor started working with a new supplier that generates CO2 for carbonating drinks from the pomace (apple residue) that is a by-product of pressing apples to provide the juice for making cider. This neat solution increases the sustainability of operations.
October 14, 2020
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