VEGWARE, the environmentally-friendly food packaging business, has boosted pre-tax profits by seven per cent to £548,924 as its founder outlined ambitions to create one of the world’s leading brands in its sector.
The business, established by former academic Joe Frankel in 2006, saw turnover increase more than a quarter, to £14.9 million.
Writing in accounts newly filed at Companies House, Mr Frankel wrote: “Vegware has consistently delivered double-digit growth year after year.”
The business model sees the company develop and manufacture foodservice packaging, such as containers and coffee cups, using trees, corn and sugar cane. As these are compostable, they can be recycled with food waste.
“This is a key factor in the promotion of zero waste in the foodservice sector,” said Mr Frankel.
UK turnover for the year was £11.6m, which the company said was driven by strong relationships with its core client base and the development of “significant” new business. “UK sales are projected to continue to grow strongly as these key relationships continue to be developed and new distributor relationships are established,” said Mr Frankel.
Exports grew by 42 per cent to £3.4m with Mr Frankel noting that the company is now present in 25 countries.
The business, which has been backed by investment from Bradenham Partners, has committed additional resource to its key international markets, which Mr Frankel said should see export sales continue to show strong growth.
Sales in Europe climbed to £2.8m from £1.9m, while in the rest of the world, there was an increase of 8.6 per cent to £580,000.
“Growth in Europe is accelerating through a mix of direct development and expansion through our UK network,” said Mr Frankel. “We are building a global brand with operations spanning five continents co-ordinated from our global headquarters in the UK.”
He added that the company’s growth was aided by supportive legislation and consumer environment, which are “creating the platform to enable Vegware to become one of the world’s foremost brands of eco catering disposables”.
Customers include Vegware independent cafes through to large-scale contract caterers and distributors.
In addition to its Edinburgh headquarters, the company has operational bases in Huntington Beach, Sydney and Hong Kong, with distribution throughout Europe and the Middle East.
In addition to a strong focus on product research and development and innovation, the company also provides clients with a creative and environmental consultancy to help implement food and packaging recycling initiatives.
During the financial year the company was restructured as part of its long-term strategy. This involved the entire share capital of the business being acquired by a new parent company, Vegware Holdings. This incurred costs of £25,000, which were booked as an exceptional cost in its accounts.
Staff numbers at the business fell by one to 50, with management numbers increasing to 10 from seven, and administration roles falling to 40 from 44. Remuneration for company directors increased by 45 per cent to £242,694, with the highest paid director, thought to be Mr Frankel, being paid £79,571.
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