Strong growth for rural supplier
West Country rural supplier Mole Valley Farmers increased turnover to a record £281m in the last financial year.
The company, which is in its 50th year, grew operating profit from £3.6m to £4.3m in the year ended 30 September 2010, with net profit before tax at just over £4m.
The number of farmer shareholders has doubled in the past three years, and some £450,000 was distributed back to shareholders in the past year.
Mole Valley says investment in its core agricultural and rural retailing business, plus new business initiatives and trading opportunities contributed to the growth. Indeed, Mole Valley Retail increased revenue by 3.9% to a record £80.4m, with agricultural products accounting for 60% of total branch sales. There were 71,163 additional customer transactions.
Its core feed business achieved a record 550,000t of manufactured feed, while the alternative feeds business grew significantly to supply over 187,000t to farms.
“Undoubtedly the rise in farm input costs and squeeze on margin is going to present a challenging year for our farmer shareholders,” chief executive Andrew Jackson said. “However, we will be doing our level best to offset these increases. The strategic investments in the past three years are making a valuable financial contribution to the business for the benefit of our members.”
Two acquisitions were made in the past financial year, namely mid-Devon-based dairy feed company Three Counties Feeds, and the retail business of CWG (Central Wool Growers), now trading as CWG Countrystores in the East Midlands and East Anglia.
