By Scott Wright
THE chief executive of Parsley Box, the Scottish ready-meal firm, has declared the business has “stabilised” following a tumultuous year.
Parsley Box, which targets the Baby Boomer generation, reported yesterday that losses had widened to £9.7 million in the year ended December 31, following a reverse of £3.2m in 2020.
Having seen demand for its meals peak in the months after the first lockdown was imposed in early 2020, the company struggled with staff shortages and supply-chain disruption in the second half of last year, leading it to narrow its product offer and pull back on marketing to ensure it could continue to serve core customers.
A fund-raiser was launched following year-end that saw the company generate more than £6m from investors, including £5.9m through a placing supported by major shareholders and £0.14m via an open offer. The funds have helped it shore up its balance sheet, kick-start its marketing push, and expand its product range.
In a statement yesterday, the company said the fund-raiser has given it confidence that this year will mark “the beginning of a new chapter in the group’s development”.
Chief executive Kevin Dorren said: “We have stabilised and improved the business significantly. The new management team members have settled in and with the funding now complete, we are well placed to execute our growth strategy for 2022 and beyond.
“The Parsley Box team comprises experience, commitment, inspiration, creativity, and leadership - the skillset for business growth. We are confident and excited about the future, and the team and I are determined to build on the current stronger foundations to expand and grow.”
Parsley Box was founded by Gordon and Adrienne MacAulay in 2017 after the couple had found it difficult to find food delivery options for Mr MacAulay’s mother.
Mr Dorren, a serial entrepreneur, joined the company as chief executive in 2019, before its flotation on the junior alternative investment market in March 2021.
The business performed strongly when the country moved into lockdown in 2020, catering for a target over-65s demographic who found it more difficult to get to the shops, but as 2021 went on it became caught up in global supply-chain disruption and inflation that arose from the pandemic.
In spite of lower stock availability last year, the company yesterday said that it has seen repeat revenue increase by 18% to £20.7m in 2021. Total revenue increased by 4% to £25.5m.
In a statement to the market yesterday, chairman and high-profile Scots entrepreneur Chris van der Kuyl said that although its first year as a listed company had been “very challenging”, Parsley Box’s well-documented supply chain challenges were “now within our control”,
Mr van der Kuyl noted that stock levels have continued to increase since year end, with 95% of its product lines now available; it has a range of around 120 products. And he said that costs are being “well managed”, with underlying losses having reduced in the current year to date in line with expectations.
Mr van der Kuyl said: “We have made significant progress in broadening our team in 2021 and we believe we are well placed to grow the business and its relevance to our target customers throughout 2022.”
After debuting on the stock market at a placing price of 200p per share, valuing the business at £84m, shares in have steadily fallen. Last night shares were trading at 20.05p, down 2.2% on the day.
Mr Dorren added: “I would like to thank our staff for their hard work during the year. I am incredibly proud of everyone at Parsley Box and how they adapted to the disruption caused by Covid-19 and for their efforts in an extraordinarily busy year having listed in March 2021.”
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