Wholesaler and SPAR supplier A.F. Blakemore & Son Limited reported its results for the 52 weeks ended 27 April 2025, "a year defined by decisive action to reset the business and early signs of momentum across its core growth engines".
Following strong trading for the year ending April 2024, the Group traded in a more challenging environment as prolonged food inflation, declining demand in traditional categories of tobacco, vapes and alcohol and continued labour and energy cost pressures impacted performance. Group revenue reduced by 8.1 per cent to £1.09bn, with underlying EBITDA (pre-exceptional items) of £18.5m.
But in response to evolving customer behaviour and sustained cost inflation, the Group made significant strategic progress during the year, strengthening its foundations for growth.
Grocery retail performance improved in the second half, with growth in chilled and frozen sales. This included successful store trials with Iceland, which is now scaling across the store estate. SPAR stores’ momentum accelerated following the new partnership with EGOTM, which now supports over 80 petrol forecourt stores with further growth anticipated. Finally, the launch of Blakemore Partner Plus, Blakemore’s new independent trade terms introduced increasingly competitive pricing and market-leading rebates.
The Food Solutions business secured several major new contracts, including branded goods supply to M&S Food from August 2025, and securing new long-term contract extensions with Marston’s and Moto, alongside new wins across travel, leisure and education.
The Group delivered improved operating cash flow of £7.6m and undertook a significant transformation programme. This included reducing overhead costs through the consolidation of its foodservice network, introducing the Relex AI platform to improve stock control, and reallocating support office resources. In addition, the standalone Philpotts sandwich stores were integrated into the SPAR estate. Exceptional costs of £8.8m were incurred in connection with these transformation initiatives, reflecting the scale and pace of change undertaken.
The Group ended the year with a strong, asset-backed balance sheet, with £82m of net assets including a substantial freehold property estate. A.F. Blakemore retains access of up to £80m of committed lender funding extending to April 2028.
“While performance softened compared to an exceptionally strong prior year, the actions we have taken have strengthened our foundations and are already beginning to show positive momentum, particularly across wholesale and food solutions," said Group Chairman Peter Blakemore. "As a family-owned business, we remain committed to reinvesting for the long term and are confident in the strategy we have in place for the years ahead.”