Bottling and canning business Thomas Hardy says its multimillion-pound investment in a canning line is already paying off as it plans more expansion at its Burtonwood base.
Parent company Thomas Hardy Holdings reported a small fall in profits in its newly-filed accounts thanks in part to the installation cost of that canning line. In newly-filed accounts for the year to September 30, pre-tax profit fell 2.7% to £1.8m.
But volumes rose after the new equipment came online, with turnover for the year 4% up on 2023 at £19.8m, and the group says it is already seeing new orders coming through that will boost it further in 2025.
In his statement attached to the accounts, director Chris Ward said: “The directors forecast that volumes in the coming year will be higher than 2024 as a result of a small increase in bottling volumes and the first full year of canning production volumes. With the historical investments made and a potential investment in warehousing anticipated, the group are well placed to provide its existing and prospective customers a world class service for years to come.”
During the financial year, Thomas Hardy saw a canning line from Croatia shipped to Burtonwood, installed and commissioned. The first products came off the new production line in August 2024 and production has since been ramped up.
Mr Ward said: “This year has been a transitional year for the group as inflation has started to settle down and the group has entered its first foray into can production at its Bold Lane site in Burtonwood.”
He added: “Profits were affected by the can line's pre-opening costs being charged to the profit and loss account. Volumes have largely been static on the bottling side of the business but overall volumes, helped by the introduction of canning in the final few weeks of the year, are up 6%.
“The group has renewed in the year, or is in the process of renewing, packaging agreements with a number of its customers. A new agreement to provide canning services to an existing bottling customer was also signed during the year with a volume commitment to support the investment.
“The group volumes are forecast to increase by circa 43% in 2025 with the can line now on board."
In 2019, Thomas Hardy secured funding from Barclays to add another bottling line at Burtonwood, in a move that created 50 jobs. In the accounts, Mr Ward said: “All but £600,000 of the £10,000,000 borrowed in 2019 in support of the installation of the second bottling line in Burtonwood has now been repaid, leaving the group with the capacity to expand its facilities and offering to its customers in 2025.”
The group, which has another site in Kendal in Cumbria, entered a new loan facility with Barclays to fund the canning line project at Burtonwood. It drew down £4m from Barclays, while a customer has advanced another £4m “which will be offset against trading receipts over the life of the production agreement”.
During the financial year, old brewery buildings at Burtonwood were demolished as plans for a new warehouse, which won planning consent in 2023, continued to be developed. Mr Ward said: “With the canning line now up and running the directors will turn their attention to potentially building a new 70,000 square foot warehouse to support existing customers whilst hopefully attracting new ones. Tenders for the warehouse project are expected to go out in the coming weeks.”
