Co-op reports healthy 2018 despite pension fund fears

North-east of Scotland cooperative ANM yesterday reported a trading profit of just under half a million pounds, a record shareholder investment of £6.5 million and benefits to members of £477,000 for the year ending 31 December 2018.

Commenting on the figures, ANM chairman Pete Watson said they demonstrated both the confidence members had in the group and in the future direction of the business.

The balance sheet of the co-op, headquartered at Inverurie, showed reserves and net assets amounting to nearly £27.5m at the end of 2018 excluding a pension scheme deficit. Watson admitted the company pension scheme continued to face “significant challenges and demanded considerable investment”.

“Whilst good progress has been made, a recent High Court ruling affecting all UK defined benefit pension schemes has led to the group reflecting an additional provision, required under the Guaranteed Minimum Pension Policy, through the profit and loss account,” he said.

In his report, chief executive Grant Rogerson said its marts division had faced uncertainty, with Brexit and turbulent weather conditions proving a challenge.

“Sheep sales have held up well with cattle numbers dropping only slightly as a result of a cautious marketplace,” he said. “The dry summer weather affected trade with buyers adopting a more cautious approach due to increased bedding and silage costs. This in turn impacted on the livestock figures for 2018.”

Aberdeen & Northern (Estates) reported a record-breaking year selling approximately £24m in rural properties as well as conducting valuations exceeding £72m.