After a year of growth not forecast by senior management at the company, plans to invest £60m in new acquisitions are now on the menu for R&R Ice Cream.
In 2011, the company acquired two companies: Pilpa SAS and Dungon Gelato – but still has around £60m left over for more takeovers.
International trade, particularly with Europe has proven weak compared to domestic demand: while UK trade grew by £10.4m, revenue fell by £8m in Germany and Poland. Revenues grew by an impressive 52% – however this is a result of Rolland – an acquisition made in 2010.
R&R’s French revenue leapt 52% although this was largely down to benefitting from a full year of trading from Rolland which it bought in 2010.
In the company’s latest directors’ report, it says: “2011 proved challenging with commodity prices rising once again but the board are hopeful with some of these costs now showing signs of stabilising we can recover some margin.”
“We will also enjoy the benefit of a full year of our acquisitions, particularly Pilpa, and of the capital expenditure invested in the business over the recent period.”