From Insider Media 9/05/2016
Ministry of Cake, the 150-year-old Somerset dessert maker, has reported growth in its first full-year results following a management buyout.
The company now sells more than three million cakes per week, helped in part by the popularity of The Great British Bake Off TV series.
According to recently filed accounts for Ministry of Cake Ltd, pre-tax profit grew to £797,000 in the year ending 30 September 2015, up from £148,000 in 2014. Turnover also increased to £24.7m from £24.2m the year before.
The 2014/15 results represent the first full year since the company was bought by its management from Greencore in a deal backed by private equity firm LDC.
Sales were boosted by important contract wins with both new and existing customers as well as development of new products.
Growth was supported by its recently acquired Torquay site, bought from Brakes Bros in 2014, which manufactures products for its Ministry of Pudding business.
Sales are now expected to top £30m in the current financial year thanks to rising export sales, whiel discussions are ongoing with countries as far away as China and Australia.
Finance director Jeremy French told Insider: "2015 was another good year for Ministry of Cake – and in particular I was delighted with the performance of our new business, Ministry of Pudding. From a standing start in August 2014 we have just produced our ten millionth pudding."
Looking ahead, French said 2016 sales so far were up 10 per cent on the previous year.
"Our growth is underpinned by continued new product development across our range, but we are also starting to build real scale in our export business" he said.
"We now send cakes from Taunton to Europe and beyond, with ongoing discussions as far away as China and Australia. I estimate 20 per cent of Ministry sales will come outside the UK within the next three years.
"Ministry is now selling over three million slices of cake a week – helped in no small part by Saint Mary Berry and a certain TV show."
The company was set up in 1865 by sweet entrepreneur William Tanner Maynard and took on the Ministry of Cake name in 2006.
The Ministry of Cake Prime Minister Chris Ormrod has been named South West CEO of the year by the BVCA business awards, with PwC. He was up against some strong competition, but the judges felt his contribution to the business over the past year had been outstanding. It comes on top of a host of other awards Ministry of Cake has recently been nominated for, including West of England Business of the Year