Bonus up despite fall in profits
FARMER SHAREHOLDERS of ACT, the Bucks-based farm supplies company, are to receive half the profits made during the latest financial year.
Pre-tax profits in the year to the end of June slipped slightly to £596,000, about £8000 below the previous year‘s figure, despite a higher turnover.
Sales rose £9m during the year to hit £57m, mainly due to a 19% hike in fertiliser prices, higher feed prices (up 8-10%) and fluctuating fuel prices.
Referring to the slip in profits, chief executive John Griffith said: “Higher turnover figures don‘t necessarily work through to margin.”
Nevertheless, the shareholder bonus is up 37% on the year at £290,000, consisting of a trading bonus, interest on share capital and a loyalty bonus.
About 5000 active shareholders will receive just under £60 each.
The rest will be used to strengthen the balance sheet and take ACT‘s assets to more than £5m.