Increased revenues have been recorded at handmade pie and quiche brand Higgidy. The company described its latest financial year as a “period of growth” following consolidation and brand investment. However, the capital expenditure as well as one-off costs pushed the business to a pre-tax loss.
In the year to 30 September 2018, newly filed accounts revealed a turnover of £25.5 million, up from 12 months earlier when it recorded £23.8 million. The hike, according to the company, was driven by innovation and new product development.
In the 2017/2018 period, Higgidy invested in its Shoreham-by-Sea base, spending more than £386,000 on plant, machinery and leasehold improvements. During that period, the accounts revealed the business made an operating loss of £90,000 compared to a profit of £888,000 in 2017. It is also worth mentioning that 2017’s figures were bolstered by a £1.5 million depreciation charge reduction.
Higgidy said the operating loss was down to “heavy investment in product innovation” and a “further significant one-off expenditure” of £177,000. Moreover, the price of ingredients also increased and the business refused to pass that on to customers.
In a statement filed with the results, Higgidy said: “We anticipate to continue to improve our profitability into the next year with continued investment in operational efficiencies.” In total, the pre-tax losses for the year were £180,320 compared to a profit of £816,698 in the previous period.
Higgidy was founded in 2003 and is headquartered in Shoreham-by-Sea, West Sussex.