The Courier & Advertiser (Perth and Perthshire Edition)
Farmers’ cooperative ANM Group upbeat despite plunge into red
North east: Chairman says group maintains strong trading position
North east farmers’ cooperative ANM Group plunged back into the red last year as a result of challenging market conditions.
The Inverurie-based group posted an overall loss, after exceptional items and before tax, of £124,000 for the year ended December 31 2015.
This is down from a profit of £900,000 the year before.
Turnover, which represents commission earned by the group, was also down to £8.365 million, from £8.503m previously.
This was against a £6.203m drop in throughput to £123.503m.
The co-op’s executive team said a change in accounting standards had resulted in several one-off costs and this had affected the bottom line, however the key factor hitting figures was reduced livestock numbers, volatile pricing and continued uncertainty around the Basic Payment Scheme.
Chairman Pat Machray, who up until last year was its chief executive, said: “We are quite pleased with the results bearing in mind what has been going on in the last year.
“The industry is in a difficult place and we have been affected by that.”
He said the group had maintained a strong trading position and it was set to deliver a small trading bonus to its members again this year.
The trading profit for the year was £354,000 – down 48% on last year’s figure of £682,000.
ANM executive director John Gregor said the group had worked relentlessly during the year to promote its range of membership benefits and services to support the sector in a tough year.
He said the total value of members’ benefits last year amounted to £518,000 and the group’s stocking agreement scheme supported 264 farms throughout the north and north east with 8,695 cattle and 23,948 sheep financed by the group amounting to a value of more than £8m.
Fellow executive director Grant Rogerson hailed an improvement in the group’s balance sheet with net assets, excluding the pension deficit, amounting to nearly £26.5m.
“The value of our asset base continues to grow and will be reflected in our balance sheet in years to come,” said Mr Rogerson.
“We are investing in our people, technology and heritable property to ensure as a business we can change and adapt and remain fit for future generations.
“We also continue to improve our hub at Thainstone Centre through a planned preventative maintenance programme ensuring it remains the leading multipurpose auction venue in the country.”
During the year the group’s catering arm Thainstone Events, which includes the Porterhouse Restaurant and coffee bar, returned to profitability thanks to a busy festive season and an increase in private functions at the Thainstone Exchange, while the estates division, Aberdeen & Northern (Estates) Ltd, experienced increased turnover and profits.
At a press briefing, ANM also revealed more details about its plans to build a new business park to the west of its existing base at Thainstone.
Three planning applications for the park, which stretches across 56.83 acres, have been submitted to Aberdeenshire Council and according to Mr Rogerson the plans will go in front of the planning committee for approval in May.
He said a heads of terms were already in place for eight acres of land and the plans included a site for the proposed new Scotbeef Inverurie abattoir.