Mash Direct, the family-owned food company based in Northern Ireland, absorbed a hefty write-down last year on produce destined for the US market. Accounts filed by Mash Direct show the Co Down-based company was forced to take a write-down of close to £610,000 (€730,000) on stock produced specifically for a large retail customer in the US.

The stocks of fresh potatoes and vegetable side dishes had to be written off after the US customer repeatedly postponed launching the Mash Direct brand on its shelves. The write-off resulted in a sharp decline in profits for Mash Direct last year.

For the 12-month period to the end of February 2019, Mash Direct recorded operating profits of just over £250,000 (€300,000), which is down a massive 67% on the previous year’s profits. Pre-tax profits plunged to just £22,250 – down 96% when compared to the previous year’s pre-tax profits of £0.6m (€0.7m).

Despite the hit on profits, Mash Direct recorded healthy sales growth of 9% last year as turnover reached £18.4m (€22m). The company spent almost £0.8m (€0.9m) on R&D projects last year, which equates to about 4% of turnover.

Mash Direct was established in 2004 by Martin and Tracy Hamilton on their family farm and has grown rapidly after winning supply contracts to the likes of Tesco, Dunnes Stores, Sainsbury’s, Asda and Morrison’s. More than half (56%) of the company’s sales come from the UK mainland.

The company employs over 200 staff and sources vegetables and produce from 79 farmer suppliers.