Skelmersdale ice-cream maker Fredericks Dairies is whipped into shape

Feb 3 2010 by Alex Turner, Liverpool Daily Post

ICE-CREAM maker Fredericks Dairies remained cool under recessionary pressure as a focus on forecasting and planning saw improved margins.

The Skelmersdale-based firm manufactures private label ice cream, has exclusive rights to manufacture and supply Cadbury, Del Monte and Tate & Lyle ice-cream, and also produces the Fredericks, Antonio’s and Antonio Federici brands.

It achieved pre-tax profits of £2.66m in the year to August 31, 2009, compared with a £1m loss for the 18-months to August, 2008.

Sales were £38.6m, just below the annualised figure of £40.6m for its previous accounts – although that period covered two summers.

Its directors’ report said: “The focus on core activities, and ensuring a greater degree of sales forecast accuracy and production planning has allowed the business to report improved margins and improve its working capital throughout the year with a significant reduction in gearing.

“The business has successfully negotiated three consecutive and now typically wet British summers.

“However, continuous focus on daily sales and production planning enabled the business to ensure that stock levels were well within optimum levels throughout the season, and avoided unprofitable disposal of excess stocks at the end of each season.”

Fredericks was founded in St Helens in 1896, and now employs 200 people at its Skelmersdale and Kirkby sites.

It is the second-largest branded manufacturer in the take-home ice-cream marketplace, behind Unilever.

No dividend was paid – with shareholders’ funds now above £3.7m.

The two directors – brothers Frank Frederick and Philip Frederick, grandson of founder Antonio Frederici – split £960,000, with the highest paid receiving £580,000.

ALEX TURNER