Company Reports & Accounts


By Roger Dean


W & H Marriage and Sons Ltd On 3 February 2023, this company reported on the basis of a Group of companies, made up to 23 April 2022, against the previous period ending 24 April 2021. The company describes its principal activities as Grain Milling (SIC 10611) and the Manufacture of Prepared Feeds for Farm Animals (SIC 10910). The Group reported that, in the period under review, turnover


had amounted to £64.5 million as against the corresponding period a year earlier of £64.4 million. The Group reported that, at the operating profit level, profitability declined ‘significantly’, from £1.6 million, a figure which excludes an insurance settlement of £690,000, to an operating loss of £873,000. The Group attributes this to static turnover and lower gross margins, primarily reflecting the increased cost of raw materials. The Group also noted that production and distribution costs increased significantly, from £10.6 million in the preceding year to £12 million in the period under review, ‘in consequence of rising distribution costs, a consequence of the ongoing supply chain issues and planned production expansion at the subsidiary level, resulting in increased production headcount and depreciation charges.’ The Group was, in common with other businesses in the feed


industry, affected by the Covid-19 outbreak. It was also affected by other events outside its control. A significant proportion of the Group’s product costs come from agricultural products. The UK’s 2021 wheat harvest was ‘poor quality’ and Canada had a much-reduced spring wheat crop. The Group’s gross margins were consequently affected in the second half of 2021. The Board of Directors announced that the company’s Chelmer feed


mill would cease production with the final day of production in January 2023. Technically, this constitutes a post balance sheet event.


Norvite Animal Nutrition Company Ltd This company is involved in the manufacture and supply of complete feeds, animal feed supplements and associated products. The Group also currently has three ‘Farm and Country’ retail outlets, a third outlet being opened during the year under review. The company released its report and accounts for the year ending


31 May 2022 on 16 February 2023. The company reported that the year under review had been ‘challenging’. The global Covid-19 pandemic had led to ‘unprecedented business conditions’, with the result that the company had to react quickly to fast evolving situations. However, the company reported that the business had coped well with staff working at home or off -site or a hybrid of the two. During the year under review, the company increased its turnover by 13 per cent to £18,303,355 as against £16,186,944 in the preceding


PAGE 14 MARCH/APRIL 2023 FEED COMPOUNDER


accounting year. Its cost of sales, principally raw materials, increased by 15.2 per cent, indicative of the surge in raw materials in world markets. As a result, the company’s Gross Profit increased by £178,798 or 5.2 per cent. The company reported that a key element of the business was to source as many of its raw materials locally as possible. The company noted that the Agricultural Bill was going through Parliament which would affect the future of farming following the withdrawal of the UK from the EU and that they ‘are monitoring the progress closely’. The company incurred £2,973,409 in administrative expenses,


£118,570 more than the previous year’s administrative expenses. This left the company with an operating profit for the current financial year of £611,809, £32,079 or 5.5 per cent ahead of the previous accounting year’s outcome. The company received £15,969 in interest payments and incurred £36,200 in interest charges, leaving the company with pre- tax profits of £591,578, an increase of £38,510 or 7 per cent compared with the previous accounting year. The company was under the control of Edward C. Smith, a Director, during both the current and previous year.


Lloyds (Animal) Feeds Ltd This company is involved in the milling of grain (SIC 10611) and the manufacture of prepared feeds for farm animals (SIC 10910). It published its Report and Accounts for the year ending 31 March 2022 on 30 January 2023. During the accounting year under review, the company reported


turnover amounting to £94,214,541, compared to the previous accounting year’s turnover of £85,166,927, an increase of £9,047,614 or 10.6 per cent. The company’s cost of sales during the year under review, principally raw materials, rose from £71,127,203 in the previous accounting year to £81,384,318, an increase of £10,257,115 or 14.4 per cent. This resulted in a sharp fall in Gross Profitability, from £14,039,724 in the previous accounting year to £12,830,223 in the accounting year under review and reflects increasing raw material costs that were not recovered. The company incurred administrative expenses of £13,301,455


during the year under review, £774,980 more than in the previous accounting year. The company also reported ‘other operating income’ amounting to £3,469,100 in the year under review, compared to £4,224,587 in the previous accounting year. Operating profits in the year under review amounted to £2,997,868, equivalent to 3.2 per cent of turnover, compared to 6.7 per cent in the previous accounting year. The company received interest payments and similar charges


and incurred interest charges and similar expenses. When these items are taken into account, the company’s pre-tax profits amounted to £3,093,777 as against £5,768,884 in the previous accounting period, the figures respectively generating pre-tax profit ratios of 3.28 per cent and 6.77 per cent. The Directors declared themselves to be ‘satisfied with the


Company’s performance throughout the year’ and consider that the company will continue to develop its activities in the foreseeable future. The controlling party is LAF Holdings Ltd, the ultimate parent company by virtue of its 100 per cent shareholding of the company.


Comment section is sponsored by Compound Feed Engineering Ltd www.cfegroup.com


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