The founder of a North East company that has gone from a single cash-and-carry to a national operation with a £500m turnover has announced his retirement.
Kitwave chief executive Paul Young will step down next March, when he will be replaced by the company’s chief operating officer Ben Maxted. In a statement to the Stock Exchange, which Kitwave joined in 2021, the company said that a handover period to Mr Maxted had begun.
Mr Young’s departure has been announced alongside a trading update in which Kitwave said that it expected its full-year financial results to be in line with current market expectations, though it sounded a note of caution about inflationary pressures in its markets.
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Kitwave chairman Steve Smith said: “Paul’s retirement next year will mark the end of a remarkable career with Kitwave. Having founded the company in 1987 as a single-site confectionery business Paul has been instrumental in its growth and development into the delivered wholesale business that it is today. On behalf of everyone at Kitwave, we thank Paul for his vision and enduring contribution to the group and we wish him well in his retirement.”
Mr Young said: “On behalf of the directors, we are delighted to announce that Ben Maxted will become chief executive officer following my retirement at the company’s AGM in March 2024. As chief operating officer, Ben has demonstrated excellent commercial and operational expertise and these skills will continue to be invaluable in his new role and in delivering the next phase of our growth strategy.
“The board continues to remain committed to delivering value to our shareholders. I believe that Kitwave will continue to go from strength to strength and post my departure, I look forward to being a long-term shareholder in the company.”
It its trading update, Kitwave said it had seen a “strong” performance in the first half of its financial year, with “positive momentum” across all divisions. It said the integration of its West Country Food Holdings division, which it acquired for £29m last December, had been successful, with a new distribution centre for its South West operations due to open next year.
Kitwave acknowledged that broader economic conditions had created “inflationary challenges” but said that it had the experience and expertise to mitigate those risks.
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Mr Young said: “I am delighted to report that Kitwave continued to perform strongly both financially and operationally in the financial year ended 31 October 2023. Given that trading in the wholesale sector is typically stronger in H2 of our financial year, we capitalised on the positive momentum from H1 2023 and anticipate being in line with current market expectations for the full year.
“We are particularly pleased with the excellent performance of West Country Food Holdings since its integration into the group earlier this year enabling Kitwave to now offer high-quality fresh produce across the South West. The board continues to remain committed to delivering value to our shareholders, and I look forward to presenting record financial results to shareholders for the year ended 31 October 2023.”