Company Reports & Accounts


By Roger Dean


AB Agri Ltd This company filed its latest Annual Report and Accounts for the twelve months ending 15 September 2018 on 8 May 2019. Sales, at £957 million, were almost £102.1 million ahead of the


previous year, an increase of 11.9 per cent. Revenues were ‘well ahead’ of the previous year with growth in all businesses, predominantly as the result of strong compound feed and premix sales. However, the company’s Gross Profit ratio fell from 12.9 per cent to 12.1 per cent in the year under review, a four-year low as the result of a 12.9 per cent increase in the company’s direct costs. The company appears, though, to have successfully contained its indirect costs. The company’s Operating Cost ratio, at 1.1 per cent, reflects rising


raw material costs and recovery from a previously high level of indirect costs. The Pre-tax Profit ratio reflects a similar combination of factors.


Mole Valley Feed Solutions Ltd This company submitted its Annual Report and Accounts for the twelve months ending 30 September on 18 June 2019. Despite what the company called ‘challenging market conditions’,


Mole Valley Feed Solutions had what it described as ‘a good year of trading’. Total revenues, at £220.16 million, were £24.6 million ahead of the previous year, an increase of 12.6 per cent. Total feed tonnage in the year ending 30 September 2018 was 655,007, up by 21.4 per cent on the 539,542 tonnes reported in the previous year. Pretax profits in the year under review amounted to £3.16 million, £2.09 million more than in the preceding twelve months and the highest for more than a decade. The company reported that the key business risks and uncertainties


affecting Mole Valley Feed Solutions were related ‘to the contracting size of the ruminant animal feed sector and increased competition from other compound feed manufacturers’. The company reports that its Gross Margin percentage in the year


under review, at 7.8 per cent was very slightly higher than the previous year’s 7.7 per cent. However, when taken against the average of the preceding decade – 8.5 per cent – it illustrates the pressures that have exerted themselves on the livestock feed industry over the past two years. Nevertheless, the company has successfully controlled its indirect costs which, in the year under review, constituted an indirect costs ratio of 6.1 per cent, compared to a ten-year average of 7.5 per cent. As a result of these factors, the company’s operating profit ratio, at 1.6 per cent, was its highest for a number of years and equaled only by the result for the year ending 30 September 2014. The company’s ultimate parent undertaking and controlling party is Mole Valley Farmers Ltd.


Duffield’s (South West) Ltd This company, formerly known until December 2012 as Pen Mill Feeds Ltd, submitted its accounts for the year ending 29 September 2018 on


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18 April 2019. The company drew attention to the so-called ‘Beast from the East’


which it described as ‘cold weather and snow not seen since the early 1980’s.’ This caused ‘a spike’ in demand, putting huge pressure on feed mills around the country. This was followed by a very dry summer, the driest since 1976 and which caused a sharp increase in sales of feed, especially for the group’s ruminant feed customers. The lack of grass and other forage increased sales of feed, contrary to the usual pattern of summer feed sales. The company’s total revenues in the year under review amounted


to £28.2 million, £3.1 million or 12.4 per cent more than in the preceding year. Operating profits amounted to £1.1 million, up by £579,000 or more than double and pretax profits, at £1.08 million, were ahead by £571,000 or 113 per cent. The company’s Gross Profit ratio in the year under review, at 15.4 per cent, was at an eleven-year high, indicative of the company’s success in passing on the rising cost of feed materials to its customers. The company’s operating profit ratio, at 3.9 per cent, was also at a multi-year high and this was duly passed on to the pretax profit ratio of 3.8 per cent.


Wynnstay Group Plc Wynnstay has reported results for the half year ending 30 April 2019 which reflect the weaker trading conditions within the sector. Revenues increased to £260.57m (2018: £218.53m), with profit


before tax down to £4.12m (2018: £4.91m) and net assets up by 5.6% to £92.97m (2018: £88.05m). “The combination of abnormally warm weather, which reduced


feed demand during traditionally important months, and more cautions spending patterns by farmers in reaction to a softening in farmgate prices and Brexit uncertainties, created challenges for the agricultural supplies sector. Wynnstay’s results reflect this,” comments Gareth Davies, Wynnstay Chief Executive. The agriculture division saw revenues of £195.05m (2018:


£160.14m) and operating profit of £1.79m (2018: £2.05m). The results reflected the reduced demand for feed during the traditionally peak winter months, however, the mild and drier weather conditions drove demand for fertiliser and grass seed. The specialist agricultural merchanting division saw revenues of


£65.48m (2018: £58.27m) and operating profit of £2.67m (2018: £3.10m), this was primarily driven by an expanded network of depots, however, the business also experienced a reduced demand for weather-related products during the mild winter. “We continued investing in our manufacturing and production plants,


and have also expanded our farming customer base, strengthening our presence in the South West with the acquisition of Stanton Farm Supplies in April 2019,” explains Mr Davies. “Wynnstay’s long-term prospects within the industry remain strong,


and at this stage of the financial year, the Board’s expectations for the full year outcome remain unchanged.”


Youngs Animal Feeds Ltd This company submitted its annual Report and Accounts for the year ending 31 October 2018 on 3 April 2019. The company’s principal activity continues to be the manufacturing and distribution of equine and pet foods. The Directors’ report outlines the decision to move the feed manufacturing activity from Staffordshire to Lancashire, with Youngs


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


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