King Foods, the family-run Aberdeen wholesaler known for supplying food and drink across the region, has faced a challenging year, ending with a financial loss.
The company’s latest report paints a picture of tough trading conditions, as the hospitality sector in the north-east took a hit.
This was compounded by the death of its founder and sole director, John King Snr, in April 2024.
Despite these setbacks, new director John King remains “cautiously optimistic” about the company’s future.
In his strategic report, he outlines a renewed focus for King Foods, which, after selling its retail division, is now concentrating on supplying hotels and caterers throughout the north-east with a range of frozen foods, fresh fish, dry goods, and fresh and frozen meat.
However, he acknowledged trading conditions remain difficult, citing both increased competition and the ongoing impact of the Covid-19 pandemic.
Newly filed accounts for Foodstore Ltd, which trades as King Foods, show a decline in sales.
For the financial year ending 29 February 2024, the company reported a turnover of £12.6 million, a decrease from £13.2m in 2023.
King Foods’ profit loss
According to independent auditor Ronnie Birnie, the company’s pre-tax loss of £360,000 was largely due to “an exceptional bad debt adjustment”.
This was in sharp contrast to 2023, when the business recorded a profit of £197,000.
In August 2023, King Foods made a strategic move by selling its retail division, the JK Fine Foods brand, to PB Development, led by the Clarkson family, who are also behind the popular Soul Bar and Vovem in the city centre.
Under the new ownership, the Westhill branch was closed in April 2024 to concentrate efforts on the Chattan Place shop.
Evolving headquarters at Torry
Since its founding in 1994, King Foods has operated from its base in Torry.
Today, the company employs 54 staff and manages a fleet of 18 vans that service not just Aberdeen but also areas like Elgin, Edinburgh, Dundee, and Stirling.
The business continues to grow, with a dry goods warehouse, a fish house, and a newly established butchery division, expanding its offerings.
Reflecting on the challenges facing the business, Mr King said the company has seen a marked increase in competition and the erosion of profit margins.
“The company operates predominantly in the north-east of Scotland, which was the operation base of North Sea oil activities,” said Mr King in his strategic report.
“It is well-documented that the oil industry has suffered a severe downturn in operations.
“Because of this and Covid, the hotel and catering industry continues to experience reduction in trade.”
To ensure King Foods’ future success, he said directors will continue to review operations with an eye on minimising costs and maximising revenue-generating opportunities.
Conversation