The solid performance of Lancashire-based Glasson Grain contributed to an increase in profits for farm animal feed company the Wynnstay Group, according to its interim results.
Despite a reduction in sales of fertiliser and raw materials for feed, the firm reported increased sales of specialist products, resulting in a “good” contribution to the group’s overall profit of £4.82m.
Despite difficulties within the market, our increased return has come from our improvement in efficiencies and extra sales across the trading area.Chief executive Ken Greetham
Glasson Grain, founded in 1977 and acquired by Wynnstay in 2006, operates out of Glasson Dock and acts as a shipper and trader of raw materials, running its own port facilities.
Its performance up to April meant the group was able to increase profits by 2.6 per cent, despite reduced revenue of £200.56m.
Chief executive Ken Greetham said: “Despite difficulties within the market, our increased return has come from our improvement in efficiencies and extra sales across the trading area.
“This is an encouraging first half performance, stemming from our balanced business model.”
The Wynnstay Group, which began as a consortium of tenant farmers in North Wales almost a century ago, has expanded rapidly over the last 15 years with a series of acquisitions, including Glasson Grain. It now trades across the North West, Yorkshire, most of the West Midlands and all of Wales.
In his report to shareholders, chairman Jim McCarthy said output prices for many farmers still remained “unacceptably low,” but these were expected to improve due to the cyclical nature of global economic factors.
“Prices for agricultural outputs remain below the realistic cost of production for many farmers, mainly as a result of the current surplus of world supply of grain and dairy products,” he said.
“The balance of trade should reverse in the foreseeable future, improving trading conditions for our customers.”