Big profit drop for Usborne
Big profit drop for Usborne
USBORNE has announced pre-tax profits of £16,000 in the year to Jun 30, 1997.
This compares with £1.1m in the previous 12 months, but having a big impact was a £951,000 deduction for "goodwill", following the sale of the grain division.
And the later sale to management of Dutch subsidiary Trigo, marked the complete withdrawal from the grain business.
Usborne Fertilisers managing director John Ridd says: "The opportunities to make big margins from putting two names and addresses together as a grain merchant are limited."
The group is now to expand its Southampton Docks facility with a £1m high-tech, tower blending facility, which should be up and running by next April. This will cater for the trend towards site-specific fertiliser blends, says Mr Ridd.
Meanwhile farmers could be storing up problems if they economise too heavily on P and K fertilisers, he warns. With income down, the temptation may be to take a "fertiliser holiday". But land may already been in deficit following last years bumper harvest.
John Ridd (left) set to expand Usbornes Southampton facility.