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Business & Economy

Kitwave Group eyes further growth as profits rise ‘significantly ahead of expectations’

An independent wholesaler has not ruled out further expansion after the easing of COVID-19 restrictions and increased seasonal demand pushed profits higher.

Kitwave Group, based in North Shields, says it stands ready to “grow organically and capitalise on the fragmented nature of the UK market through the acquisition of smaller regional competitors”.

The business, which floated on the AIM sub-market in May, has grown rapidly in recent years, with a number of deals for operators including alcohol wholesaler HB Clark, Central Supplies and Alpine Fine Foods.

And, according to a trading update released today (Friday, November 26), it expects such progress to continue, with pre-tax profits for the year to October 31 tipped to rise “significantly ahead of expectations”.

Paul Young, chief executive [pictured above, right, with chief finance officer David Brind], said:As we enter the new financial year, the outlook remains positive.

“Assuming no further national lockdowns or disruptions to the leisure and hospitality sectors, trading in the foodservice division should continue to recover, and we expect will return to – or exceed – pre-pandemic levels.

“Initiatives are in the process of being implemented to drive organic growth, while the board continues to review opportunities for acquisition.”

Paul added the firm was also boosted by its in-house team of around 400 delivery vehicles and staff, which meant it bypassed the HGV driver shortages experienced by some rivals earlier this year.

He also revealed Ben Maxted, group operations director and head of its frozen and chilled division, has been appointed chief operating officer with immediate effect.