Out of restructuring comes a profit for Countrywide Farmers’
Countrywide Farmers’ drastic restructuring in 2005, coupled with strong performance from its retail stores, appears to be paying off.
The farmer-controlled business reported modest pre-tax profits of £200,000 for the year ending 31 May, 2006, compared with a £3m loss in 2005.
Ignoring reorganisation costs, profits rose to £1.1m during the year on sales that grew 5.5% to £159m. Managing director John Hardman said the 2006 results demonstrated “real progress in the turnaround of the business”.
Deteriorating performance in the animal feeds sector forced Countrywide to cease manufacturing animal feed at its Melksham plant, passing production to BOCM Pauls. This and more than 50 redundancies contributed to a £2.2m hole in last year’s figures.
This year, Countrywide’s agricultural division, which includes compound and alternative animal feeds, fertiliser and crop protection, reported an operating loss of £600,000, although this was £300,000 less than the previous year. Mr Hardman said the delayed single farm payment had made it “one of the most difficult years since foot-and-mouth”.
Encouraging results
“The improvements in the agricultural results are particularly encouraging, as we have had only nine months’ benefit from the new arrangement where we outsource compound feed manufacture,” said Mr Hardman.
Strongest among Countrywide’s portfolio is its retail business of over 40 stores, supplying farm tools, feed and, increasingly, equestrian products.
Profits from the retail sector almost doubled to £1.4m and the group has opened new stores at Cirencester, Cardiff and Bridgwater.
Sales of energy, fuel and utilities showed growth, but slightly down on the year, which the firm blamed on high oil prices and the cost of growing this sector of the business.
Shares in Countrywide were now listed on share trading facility Sharemark, and the retail division was set to launch online trading through its website, Mr Hardman added.
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