Blueheath reports loss

Blueheath has reported pre-tax losses of £3.8m for the six months to September 2, up from £2m for the same period last year, despite increasing sales by 48% to £77.2m.
However, chairman Richard Rose said the company’s recovery plan was scheduled to take it through break even and into profit in the first quarter of 2007.
Blueheath’s recently announced full membership of Key Lekkerland was a key part of the recovery plan, he said, as it would simplify its buying and sales operation and strengthen its ability win national contracts.
In addition, Key Lekkerland’s other members will deliver to Blueheath customers outside its delivered area. Rose said the loss of sales to these customers would be more than offset by the cost savings in logistics because Blueheath was losing money on all such customer deliveries.
The pricing structure will also be altered so that it rewards customer loyalty.
Rose said the CTM depot in north Wales bought by Blueheath last year was very profitable and it provided the benchmark for the rest of the business.

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