Openfield Group reports another good year
Openfield Group Ltd, the farmer-owned grain marketing and farm inputs business, has reported operating profits £2.9 million for the financial year to 30th June 2012.
Openfield Group Ltd, the farmer-owned grain marketing and farm inputs business, has reported operating profits £2.9 million for the financial year to 30th June 2012.
The results build on the excellent year recorded in 2011 and mark another solid year for the business which is investing heavily in new information technology systems and expansion of the Openfield Network of independent central stores.
Group turnover increased 23% to £774m on the back of higher commodity prices while the volume of grain handled remained unchanged compared with the previous year at 4.3m tonnes. Profits before tax fell from £2.9m in 2011 to £2.6m in 2012, a satisfactory outturn. However, profit after tax increased to £2.1m compared with £1.7m the previous year as a result of a substantially lower tax charge.
“The results confirm our continued progress to building a solid business that places the farmer at the heart of the grain supply chain while capturing value for our members and delivering excellent service to our supply chain customers,” said John Stables, acting Group Managing Director.
Whilst borrowings for the 2012 year increased, moving from a net cash position of £0.9m in 2011 to a net debt of £8.2m in 2012, this was entirely linked to the point that the year-end fell in the working capital cycle. Openfield has no core debt.
“The past year was one of significant economic uncertainty for the UK and Europe and while world markets were less volatile than in recent years they were also far from stable. Openfield endured these and a challenging environment well thanks to well proven and tested risk management with the result that the business produced a robust set of results,” added Mr Stables.
The Group also reported that continuing investment in member, farmer and customer service were also producing successful results. “We have invested heavily in new IT systems and worked hard with members to understand how we can serve them better,” said Mr Stables.
