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Modern Milkman reports £15m pre-tax loss

Simon Mellin and David Foreman

Colne-based digital grocery delivery platform has announced pre-tax losses of £15.4m and issued a warning on the current state of the economy in its latest report to Companies House.

The company was founded by chief executive Simon Mellin and delivers eco-friendly produce including milk, fruit and bread in plastic-free packaging and returnable glass bottles through an online subscription model. In June it completed a £21.9m funding round, which included a £2.25m investment from Praetura Ventures. It currently makes around 350,000 deliveries a week and employs 650 staff across 16 national delivery hubs.

The latest statement revealed that revenues had grown by 209 per cent in 2021 despite the pre-tax loss. It continued: “The current macroeconomic conditions pose a challenge for all businesses. Production costs have been steadily increasing for many years now, but recently they have spiralled for several reasons, including long-term inflation as well as the ongoing war in Ukraine which has impacted costs of farming essentials such as fertiliser, fuel, feed as well as labour costs.

“This will have an impact on operating margins however we work closely with our suppliers to ensure we are paying a fair price for the products in line with our values. We also continually review retail prices for our products to ensure we remain competitive.”

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