Key Lekkerland members help Blueheath cut costs

Blueheath has given more details of its recovery plan and chairman Richard Rose said it was scheduled to take the company through break even and into profit in the first quarter of 2007.

Speaking as he announced its interim results, he said Blueheath’s recent decision to take full membership of Key Lekkerland was a key part of the recovery plan, as it would simplify buying and sales and strengthen its ability to 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.

Rose said the CTM depot in north Wales, which was bought by Blueheath last year, was very profitable and it provided the benchmark for the rest of the business.

Blueheath reported pre-tax losses of pound;3.8m for the six months to September 2, up from pound;2m for the same period last year, despite increasing sales by 48% to pound;77.2m.

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