NEWS  >  Record year at fast food supplier
21
Dec

Record year at fast food supplier

Pre-tax profits have increased past the £3m mark at one of the largest suppliers of doner kebab meat and burgers to the UK’s fast food market after it enjoyed an “exceptional year”.

Paragon manufactures and supplies a variety of products across the UK.

It operates from a factory on Doncaster’s Yorkshire Way, which was opened by Prince Andrew in 2004, and employs a workforce of about 120.

For the year to 28 February 2016, Paragon reported turnover of £32.17m compared to £32.16m the previous 12 months.

Of this total, £29.9m came from the UK – up from £29.4m in 2015 – while income from the rest of Europe was down from £2.8m to £2.21m.

Reflecting on its performance, the food manufacturer said it had been “another exceptional year”.

“Focusing on higher value products, streamlining the product range and productivity improvements, coupled with stable beef prices, has meant that we have achieved our best result to date,” it added.

“The meat industry is more robust than it has ever been.

“The likelihood of a major shock like the horsemeat scandal is highly unlikely. As a precautionary measure, the company will continue its strict supplier approval procedures and DNA testing regime.”

Meanwhile, Paragon believes Brexit is “likely to have some adverse effect” on margin as weaker sterling “will translate to higher raw material costs”.

“Depending on competitor behaviour, over the next 12 months the bulk of the raw material cost increases could be passed onto customers in order to get back to a normal profit margin.”

Original source