Serial sector investor Luke Johnson has told M&C’s sister title The Grocer that he is not planning an exit in Bread Holdings, the parent company of Gail’s Bakery and wholesaler The Bread Factory, after the company saw revenues climb 25% to £45m in the year to 28 February 2015.
Johnson, who backed the management buyout of the company in 2011, that the business had maintained the same levels of growth in its current financial year. Pre-tax profits increased 4.3% to £2.8m
He said: “This is a brilliant business. It’s going to double and double again. It’s far too early for an exit; we’re very patient investors.” he market it is in artisan, it is growing and it is taking share from traditional breads. In many categories, from beer to chocolate to coffee, the consumer is after high-quality products and is more willing to spend on premium items. We also have a bias towards food service and it’s fair to say food service is growing.”
Gail’s, the group’s 24-strong retail business, saw turnover climb from £14.1m to £18.1m in the year.
During the year the company acquired frozen bakery products supplier Maison du Pain for £3.6m.
Chief executive Tom Molnar said that the company’s expects Gail’s to continue to register like-for-like growth in its existing portfolio, supported by new store openings during the current financial year.
Since the year end, the company has secured new bank facilities and acquired the remaining 50% stake in the Flour Station business from Jamie Oliver Enterprises.
