School-food specialist the Brookwood Partnership saw a 65.7% decrease in pre-tax profit to £0.5m, down from £1.5m last year, mainly due to a loss of contracts with a large group of schools.
Annual turnover fell to £30.8m for the year ended 31 March 2015 (2014: £32.7m) despite making a healthy gain of £7.7m from 2013-2014.
The catering company has spent £600k integrating and rebranding Graysons Education as ABsolutely Catering. Brookwood recruited employees for the new contracts which were acquired in 2013.
Brookwood's managing partner Graham Sibthorp passed away in December 2013 and the company says it has also invested in staff to strengthen the senior management team.
Sue Parfett, managing partner of Brookwood Partnership, said: "Our latest accounts show the first full year impact of the loss of a large group of schools that we had managed for five years. While we continued to gain contracts during that year, this group made up a significant percentage of our business and the net effect was a reduction."
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