4 April 1997

Farmways profits dive

FARMWAY, the Darlington-based co-operative, made a trading loss of almost £180,000 in the year ended Nov 30. But the set-back is seen as a "temporary blip".

Substantial restructuring costs were the main reasons behind the profits dive. These included the link-up with Tynegrain to form GrainCo, and establishing its expanded machinery business as a separate trading entity.

Chairman, Robert Campbell told last weeks annual meeting that the transfer of grain trading to GrainCo was expected to reduce turnover by £26m. The cut of only £19m reflected a 16% increase in sales from on-going operations.

Despite the trading loss, profit distribution is unchanged at 5% interest on share and loan capital.n