Frontier Agriculture recorded a slight drop in both turnover and pre-tax profit in the year to 30 June 2020.
The company’s 15th full year of trading produced a pre-tax profit of £25.7m on a turnover of £1.613m.
This compares with a £31.5m pre-tax profit in 2019 on a turnover of £1.653m.
Group operating profit in 2020 was £27.97m, down from £34.28m the previous year.
The poor autumn of 2019, low winter plantings and a dry spring with flat cereal values reduced the UK market for crop protection by 30% and lowered demand for crop inputs as growers sought to mitigate their costs of production, said the chairman’s statement to the accounts.
This was the worst crop inputs market in memory, said the statement, but the company’s diversified activities including a strong grain trading performance, enabled the business to mitigate some of the impact of this on performance.
Grain-related annual gross earning represented 46% of the group’s total gross earnings and the profit after tax of £20.24m represents a 7% return on capital.
During the year the company completed its new seed-processing facility at subsidiary GFP.
Frontier is jointly owned in equal shares by Cargill and ABF Holdings.