Scottish sweetie company Golden Casket (Greenock), the firm behind the Millions and “£One Pounders” brands, has revealed it tumbled to a loss of more than £2 million after writing off an investment in and loan to football club Morton.
The latest accounts filed at Companies House by the firm, which is owned by the Rae family, show that it fell to an after-tax loss of £2.016 million in the year to December 31, 2021, from a profit of £436,075 in the prior 12 months.
Golden Casket (Greenock) made an operating profit of £463,155 from its confectionery business in the year to December 2021, up from £420,939 in the prior 12 months.
Greenock Morton Football Club, which is currently fourth in the Scottish Championship behind Queen’s Park, Dundee and Ayr United, is now majority-owned by its fans.
In their strategic report, signed on behalf of the board by Crawford Rae, the directors say of the loss for Golden Casket (Greenock) arising from Morton’s move into community ownership: “In September 2021, the remainder of our shareholding in Greenock Morton Football Club was transferred to Morton Club Together (MCT), ending our long association with the club.
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“As part of the transaction, our substantial investment in the club and a loan totalling £2,385,213 were written off such that our overall result for the year is a loss after tax of £2,016,442.”
Crawford Rae’s father, Douglas Rae, founded Golden Casket in 1959 when sweets were less than six pence per quarter and milk was 4p per pint. Douglas Rae, a former chairman of Greenock Morton Football Club, died in 2018 at the age of 87.
The turnover of Golden Casket (Greenock) rose to £21.6m in the year to December 2021, from £18.4m in the prior 12 months, with the firm noting it had returned to levels achieved before the coronavirus pandemic in what it observed was a highly competitive market.
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In their strategic report, the directors say they are “pleased with the overall performance of the business”.
They add: “Turnover from our core confectionery business increased by 15 per cent and returned to pre-pandemic levels despite high levels of competition…
“With increased competition in the confectionery market, further investment has been made within Golden Casket’s associated manufacturing company with a view to increasing output and turnover levels in our core brands.”
The workforce of Golden Casket (Greenock) was steady, at 45.
The company’s turnover in the UK market totalled £19.2m. The rest of Europe accounted for £1.22m of sales. And turnover in countries outwith Europe totalled £1.18m.
The directors flag competition from other suppliers, price, availability of product, and employee retention as the key business risks affecting the company, noting: “These risks are managed by a board of directors with detailed industry knowledge and close involvement in the day-to-day operations, supported by a loyal workforce.”
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They add that the rise in inflation and the conflict in Ukraine “have created uncertainty”.
The accounts show a loss of £1,947,503 on the disposal of shares in Morton, and the write-off of a loan to the football club of £437,710.
They state: “On 28 September 2021 the company disposed of its entire shareholding in Greenock Morton Football Club Limited to Morton Club Together Ltd, a community interest company, for a nominal amount. A loan to Greenock Morton Football Club Limited of £437,710 was also written off.”
Golden Casket says on its website: “We are a family owned and run company. We now have the third generation of the Rae family working in different departments within the company from sales and marketing to production.
“Our staff, many with over 20 years’ service, will tell you that ‘the Casket’ has a family feel to it. That sense of belonging and of family values is well known in the confectionery industry.”
The company adds: “The estate where all production, warehousing and offices are based was purchased in 2016 by Douglas Rae to ensure the continued future of the company for his family and employees.
“There is also constant investment in machinery and plant. We are always striving to grow and continue delighting our customers worldwide.”
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