AF Blakemore sees 8.1% drop in revenue and invests in transformation

AF Blakemore & Son saw its revenue decline by 8.1% to £1.09 billion in the year ending 27 April 2025. EBITDA was £18.5 million.

Following strong trading for the year ending April 2024, the family-owned business 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.

Peter Blakemore: ‘The actions we have taken have strengthened our foundations and are already beginning to show positive momentum.’

In response, the group strengthened 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 the arrangement across the store estate.

Blakemore serves over 800 SPAR convenience stores, and it signed a new partnership with EGOTM, which now supports over 80 petrol forecourt stores, with further growth anticipated.

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. It also secured long-term contract extensions with Marston’s and Moto, alongside wins across travel, leisure and education.

The group delivered improved operating cash flow of £7.6 million 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 £8.8 million 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 £82 million of net assets including a substantial freehold property estate. AF Blakemore retains access of up to £80 million of committed lender funding extending to April 2028.

Chairman Peter Blakemore said: “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. 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.”

AF Blakemore expects to build on this momentum, supported by a lower cost base, improved productivity, new contract wins and continued investment in its retail estate and supply chain capabilities. The group is targeting to grow sales and significantly strengthen cash flow this year.

The long-term ambition remains unchanged: to grow SPAR as the UK’s best community grocery retailer while building a scaled Food Solutions business.