Kitwave Wholesale Group today announced record financial results for the year ended April 2017.
Over the last four years the Today’s Group member business has successfully increased its EBITDA by nearly 100% to £10.8 million and increased turnover by over 50% to £296m. The Group now employs over 1,000 people across the UK with over 250 based in the North East and expects to maintain strong growth going forward.
During the results period Kitwave’s management team completed a refinancing deal which saw the business raise funds from US investors, Pricoa Capital Group and Allstate Investments, for a minority stake, in order to continue pursuing its acquisition strategy. This funding along with longer term funding from Barclays and Yorkshire Bank is in place for the next seven years and will allow Kitwave to pursue its core acquisition strategy. This also being backed up by continued strong cash generation in the Group ensuring a long term supportable debt structure can be maintained.
During the year the Group acquired Phoenix Frozen Foods a West London based wholesaler and in a new venture entered the on-trade alcohol market with the acquisition of HB Clark. HB Clark is a provider of all the major branded alcoholic and soft drinks alongside its own brand ‘Infamous’ soft drinks and ‘Clarks’ wines and craft beers.
David Brind (pictured), CFO of Kitwave, said: “It’s been a fantastically positive year for the Group following the successful refinancing of the business It is fundamental to our strategy that we maintain a flexible platform from which to operate and that includes our financial structure that is always kept at longer term serviceable levels. Whilst some exceptional costs have been incurred due to the refinancing project the sustainable future performance of the group will be very strong.
“New investment will allow us to develop further in some key focussed areas and we are excited about delivering on our ambitious expansion targets for the future. The independent retail and foodservice sectors demands service quality, product range, value and product availability and the Kitwave solution continually delivers in all of these areas.”