SHS Group has blamed a “disappointing” set of 2024 results on challenging trading conditions, as sales fell and margins were squeezed at the Belfast-headquartered company.
Revenues fell 5.1% in the year to 27 December 2024, slipping by just more than £30m to £631.5m.
The group, which includes brands such as Shloer, WKD and Meridian, alongside private-label spices and firelighters, experienced a squeeze on margins at the same time, as the cost of sales rose by £23m.
Part of the jump in costs, according to a directors’ statement filed with the accounts, was due to “significant disruption” at the company’s main logistics provider, affecting both sales and cost of operations. The situation “stabilised towards the end of the year”, directors said.
The combined impact of falling revenue and increased costs cut SHS’s gross margin by 80 basis points to just 13.8%. The company’s operating profit was cut by a fifth (20.1%) to £15.4m.
SHS CEO Paul Gillow, who joined in January 2025, was optimistic about the company’s ability to cope with headwinds despite the tough year.
“Like many in our sector, SHS Group has faced a challenging trading environment, with pressures from supply chain disruption, rising commodity, energy and transport costs, labour shortages and political instability,” he told The Grocer.
“While this has impacted both turnover and profit compared to 2023, the group’s performance was enhanced by significant work across all divisions and reflects our continued investment in our brands, category and channel expertise, manufacturing assets, systems and people development.
“We are confident this strategy will enable us to navigate current headwinds while creating value for our customers and partners. SHS Group remains a resilient and diversified business with a strong portfolio of brands across multiple categories which positions us well for future growth.”
The company’s decline in turnover was slightly faster in the UK – by far its largest market – at 5.6%, compared with a 3.8% decline in international sales to £109.9m.
SHS now employs around 1,100 staff, having reduced its manufacturing workforce by about 70 employees over the year.
The company has taken significant action to limit and reduce its greenhouse gas emissions, including reducing its total energy consumption 10.5%. SHS has now reduced its scope 1 and 2 emissions by 39% against a 2019 baseline, ahead of a goal of 33% by the end of 2025.
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