Leading farmer-owned co-operative, the ANM Group is reporting a trading profit of £354,000, for the year ending 31st December 2015, in addition to a discretionary members’ trading bonus for a second year.
Pat Machray OBE, ANM Group Board Chairman, said: “In the face of some tough challenges in 2015, the Group maintained a strong trading position and we are delighted to once again allocate a small trading bonus in appreciation of the ongoing commitment from our members.”
Despite the market conditions - particularly in the livestock auction side of the business with reduced livestock numbers, volatile pricing and continued uncertainty around the Basic Payment Scheme – a trading profit of £354,000 was achieved in comparison to £682,000 in 2014. Share capital also broke the £5m barrier as shareholders recognise the value the Group brings its members.
As a co-operative, the Group has worked relentlessly to promote its range of membership benefits and services to support the sector during a difficult year. The value of these members’ benefits for 2015 amounted to dividends of £150,000; a trading bonus of £35,000; stocking agreement interest savings of £144,000; commission cap savings of £110,000; and members’ loan scheme’s enhanced interest rates over normal bank rates of £79,000. The total value of these benefits amounts to £518,000 this year. In addition, the Group’s stocking agreement scheme supported 264 farms throughout the North and North East with 8,695 cattle and 23,948 sheep financed by the Group, amounting to a value of over £8m.
The balance sheet continues to improve with net assets excluding the pension scheme deficit amounting to almost £26.5m. Short-term net current assets have continued to increase from a position of £766,000 in 2014 to £834,000 in 2015, in stark contrast to a net liability position of £464,000 in 2013.
The Group has spent considerable time and effort investing in all areas of the business including its property portfolio and good progress continues to be made. Significant developments have also been made in identifying and implementing efficiencies within the business.
Grant Rogerson, Executive Director of the ANM Group, said: “The value of our asset base continues to grow and will be reflected in our balance sheet in years to come. We are investing in our people, technology and heritable property to ensure as a business we can change and adapt and remain fit for future generations. We also continue to improve our hub at Thainstone Centre through a planned preventative maintenance programme ensuring it remains the leading multi-purpose auction venue in the country.”
The Group’s core businesses, Aberdeen & Northern Marts and Thainstone Specialist Auctions, recorded a trading profit for 2015. Aberdeen & Northern (Estates) Ltd – the Group’s rural and commercial property service – reported another successful year, generating profits ahead of the previous year.
Thainstone Events, including Porterhouse Restaurant and Coffee Bar, saw a return to profitability attributed to a busy festive season and an increase in private functions at Thainstone Exchange and external catering operations.
John Gregor, Executive Director of the ANM Group, said: “2015 has been a very challenging year across all industries in the North East, particularly the farming sector, and our trading profit reflects the difficulties being experienced amongst our members and customers. As a Group, we are focused on ensuring the business meets the needs of the industry and maximising membership benefits. Having recently concluded a member and customer survey, it is encouraging that 96% of members and customers agreed or strongly agreed that they value the services ANM provides as a co-operative and we will continue to work hard to ensure we deliver the best possible service both now and in the future.”
The Group’s AGM will be held on Tuesday, April 12 2016 at 7pm in the Thainstone Exchange, Thainstone Centre, Inverurie. All members welcome.