Tom Barron Independent Hatcheries applies for liquidation

Director Neil Leeming said the group's poultry division has suffered losses as a result of trading difficulties due to trading restrictions resulting from avian influenza in the period
Director Neil Leeming said the group's poultry division has suffered losses as a result of trading difficulties due to trading restrictions resulting from avian influenza in the period

Creditors of Tom Barron Independent Hatcheries have been notified of the intention to put the business into liquidation.

The company, based in Lancashire, was known to have recently made redundancies after suffering significant losses. A letter to its creditors has now confirmed the intention to formally place the business into liquidation.

The letter has been circulated by the financial restructuring firm, FRP Advisory.

Accounts lodged with Companies House illustrate the difficulties facing Tom Barron's poultry business.

The latest profit and loss account of Tom Barron Independent Hatcheries Limited showed a loss of £4.4 million for the period from the beginning of July 2016 to the end of December 2017 and followed a loss of £2.9 million in the previous 12-month period.

The amount falling due to creditors within one year was £4.95 million, although £3.5 million was to group undertakings. Some £1.2 million was owed to trade creditors. Companies House records also show three outstanding debentures.

The parent company, Tom Barron Limited, made a pre-tax loss of £1.39 million for the same period. In the previous 12 months the loss was £492,000.

'Trading difficulties'

In the latest accounts, director Neil Leeming indicated that the poultry division was the problem.

In his report attached to the company accounts, Neil Leeming said: "The group's poultry division has suffered losses as a result of trading difficulties due to trading restrictions resulting from avian influenza in the period. The meat processing plant at Rufford, which was operating at a loss, has been closed in the period.

He said the group's dairy processing and farming operations had increased turnover and traded profitably throughout the period covered by the accounts.

He said Tom Barron would be expanding both dairy processing and farming. He said the company was "in a position to benefit from the increased orders being achieved and new opportunities as an when they arise."

Neil Leeming said in his report that the poultry market was "highly competitive" and comprised a small number of large distributors selling different breeds to customers.

"The differences in breed attributes such as mortality profiles, saleable eggs per bird, liveability, feed efficiency and price affect the choice of customers when purchasing birds," he said.

"The birds are highly regarded in the market place and provide a competitive advantage for the group. The Tom Barron group is the only independent layer hatchery serving the United Kingdom."

New deal

Tom Barron has been the UK and Ireland distributor for genetics company Novogen since 2012, when it signed a deal with the French company.

The Lancashire firm struck this new deal after Hendrix Genetics decided that in future its Shaver Brown, ISA Warren and ISA Brown birds in the United Kingdom and Irish Republic would be distributed through its own subsidiary, Joice and Hill Poultry Ltd.

Doug Kirkby, former national sales manager with Tom Barron until February this year, said that the failure of the Tom Barron poultry business was a "shame" because the Novogen bird had been performing well for producers in the UK.

FRP Advisory is based in Preston.