Scotland’s leading farmer-owned co-operative,ANM Group, has announced encouraging financial results for the year ending December 31 2010.
Mon, 04 Apr 2011
There was an overall trading profit of £1.027 million compared to a trading loss of £311,000 in 2009. Group throughput increased from £221.594 million to £224.137 million with turnover increasing from £98.149 million to £103.335 million.
The recovery has been most evident in the group’s Meat Division, following a comprehensive asset and personnel restructuring exercise which has resulted in the red meat companies being realigned into an integrated business unit.
This has seen Yorkshire Premier Meat return a trading profit of £568,000 compared with a loss of £200,000 in 2009, while Scotch Premier Meat slashed losses of £882,000 in 2009 to a loss of just £18,000 in 2010.
The charcuterie business in Glasgow, however, remains in intensive care. Group CEO Alan Craig, commenting on the publication of the 2010 accounts, explained that the cooked and processed facility of the group’s Meat Division is a vital element of the overall product portfolio. He said: "Very few of our competitors have the diversity and range of products that ANM can offer to existing and prospective customers."
He added that "charcuterie will continue to support and maintain that core offer" and went on to add that the business will be expected to turn the financial tables in this calendar year.
Craig also drew attention to the considerable organisational changes across the group in the last year. He explained: "We now operate three divisions, all with clearly defined roles and expectations, the results of which will be illustrated next year in the 2011 accounts’."
John McIntosh, ANM Group board chairman, said: "I am delighted that Alan and his executive team have produced a very good turnaround to return the group to profit and it is particularly heartening to see the improvements in the red meat division.
"All our staff worked very hard to achieve this and we have laid some very strong foundations to help meet future challenges."
The Livestock Auction Division traded in a predictable manner with a strong start to the year before a disappointing harvest affected store prices. However, thanks to the considerable efforts of the divisional team, volume was maintained in line with national stock statistics.
The "stock on agreement" facility of the business grew substantially again in 2010, partly as a result of general cash shortage through traditional financing routes. The fund peaked in the year at £9 million confirming this is a unique element of the group offer on which many of its agricultural shareholders depend.
TSA continued to build on its success with an increasing number of instructions from insolvency practitioners, financial institutions and businesses. This newly created division of the group, which now incorporates Aberdeen & Northern Estates, is growing rapidly and as a result is expanding into central Scotland to maximise its potential within the industry around Glasgow and Edinburgh.
The Highland Cuisine catering business faced a difficult year resulting in a modest loss of £15,000. ANM Group is currently conducting a review to establish where Highland Cuisine fits strategically within the organisation and how operationally it will support the core business. The project is likely to conclude towards the end of May.
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