Buoyant livestock trade boosts auctioneer’s profits

Harrison & Hetherington (H&H) Group has reported record pre-tax profits of £1.963m for the year ended 30 June 2026, up 14.1% on the previous year, with strong livestock values providing the largest contribution.

The auction business’s chief executive, Richard Rankin, said livestock prices had been the main driver, despite the challenge of maintaining throughput as the national sheep flock and cattle herds declined.

See also: Livestock decline puts UK meat supply chain at risk

“There have been strong performances across the business, but the lion’s share is down to the livestock team and the price of livestock,” he said.

While group revenue was down slightly last year to £19.4m, Mr Rankin remained hopeful that profitability could be sustained, but warned that maintaining performance would be difficult as livestock volumes continued to fall.

“We have our work cut out to hold our ground in the livestock sector over the coming year. Falling volumes are not something we can reverse ourselves, so we have to focus on being as efficient as possible.”

He added that tighter supply could support prices, provided livestock quality remained high.

The group was also working to raise awareness of the importance of domestic livestock production, engaging with local political representatives and business organisations including the Confederation of British Industry and British Chambers of Commerce.

“I want to get the voices of the food sector heard – animals in the field are core to the supply of food,” he said.

Mr Rankin said H&H had spent the past five years strengthening its financial position to provide protection against unexpected interruptions to trading, such as a disease outbreak.

“If we had to close the doors for any reason, we have the headroom to survive for a year rather than months.”

The group’s debt-to-equity ratio had fallen from 80% to 36%, while net assets increased to £23.1m from £22.2m.

Managing credit

While managing credit extended to livestock buyers remained a significant risk, H&H had worked with customers over the past 12-15 months to agree more acceptable terms and reduce its exposure, while maintaining relationships.

“Lending credit is a huge risk for us. We want buyers around the ring, but we also want them to pay,” said Mr Rankin.

The business carried out credit checks and prioritised regular communication to identify potential payment difficulties early.

It had also made financial provisions to protect against losses from another insolvency similar to Muchmeats, which collapsed last year.

Mr Rankin said the group’s strong financial position would allow it to continue investing in its people, facilities and services, while pursuing opportunities to grow its rural businesses.