Source - SMW
Produce Investments' FY pretax profit has tumbled to £3.5m, from a profit of £7.3m. Higher cost of sales, administrative and other operating expenses and exceptional items were factors.

Revenue was £185.1m, from £178.4m. The company also outlined a change in chairman and financial director.

Exceptional charges totalled £4.63m, these relating to the impairment and closure of Kent packing site, and exceptional charges regarding the product recall at Swancote Foods.

"I am pleased to report that Produce Investments has delivered a robust performance this year with a significant increase in overall operating profit of over 14%," said CEO Angus Armstrong.

"Although market conditions remained challenging, during the year we saw a notable improvement with greater retail stability in both volume and value.

"By working with one of our core retail customers we have been able to create a supply chain model more closely aligned to prevailing market conditions and which mitigates against the impact of any market fluctuations.

"We have continued to focus on and improve our operational efficiencies with the closure of the Kent packing facility to remove surplus capacity and improve our man hours per tonne.

"The impact of the product recall at Swancote Foods has been successfully concluded and the uninsured element has now been settled. Following the recall we installed a new blancher, improved our processes and worked hard to restore customer confidence. I am pleased to say that Swancote Foods is now well positioned to meet future demand. 

"The Board expects market conditions to remain challenging in the near term. However, with our continued focus on operational efficiencies and improving the supply chain with retailers, we are well placed to deal with these pressures. 

"We remain confident that Produce Investments is in a strong position to grow and take advantage of any acquisition opportunities which may arise."

Separately, the company said Barrie Clapham, chairman, and Brian Macdonald, Finance Director, will step down from their respective roles.

Director Neil Davidson would takeover as chairman following the company's AGM on 28 October 2016. Macdonald would be succeeded by Jonathan Lamont, who joined the business as Group Financial Controller at the start of July 2016. 

At 9:36am: (LON:PIL) Produce Investments PLC share price was 0p at 149p