ANM reduces losses to predict profit for 2013
Scotland’s largest farmer-owned business, Aberdeenshire-based ANM Group, was back in profit during the final quarter of 2012, according to chief executive Pat Machray.
The group accounts for the full year to 31 December 2012 show trading losses reduced from £2.5m in 2011 to £477,000, following rationalisation and the sale of most of the company’s loss-making meat processing interests.
Profits for the core business of livestock and specialist auctioneering, Aberdeen and Northern Marts, fell to £1.354m against £1.677m the previous year.
Group net assets rose slightly to £20.5m after accounting for a pension scheme deficit and borrowing. Group borrowing fell from £10.6m to £3.25m and has reduced further since the end of the financial year.
The board is recommending a dividend of 2.5%, giving a profit distribution of £109,000 to the co-op’s 7,200 members.
Mr Machray was brought into the group a year ago to reduce risk, following heavy losses incurred by subsidiary companies Scotch Premier Meat, Yorkshire Premier Meat and Charcuterie Continental.
“The group moved into profit in the final quarter of 2012 and while January was difficult, we are still continuing to operate profitably,” said Mr Machray. “The £2m improvement in the trading position is a tribute to the action of the board, management team and staff and is a significant achievement in one year.”
Mr Machray, formerly chief executive of accountant Johnston Carmichael, said all costs associated with the restructuring of the business had now been written off.
“The business is now fit for the future and we are confident we will return to profitability in 2013,” he said.
The group has retained a 25% interest in the Yorkshire business, which was the subject of a management buy-out, and a 25% interest in Scotbeef Inverurie, a joint venture with Scotbeef of Bridge of Allan.
Scotbeef Inverurie has plans to build a new abattoir on the group’s Thainstone site, which is due to be completed by next year.
ANM to quit meat processing