One of Britain’s biggest arable businesses has hailed a “solid performance” despite a drop in turnover and profits.
Agronomy group Masstock Arable, which trades as Agrii, reported a 25% drop in pre-tax profits to £5.222million for the year ended July 31, 2016.
This is down from £6.977million the year before, and £12.769million in the year to July 31, 2014.
Accounts filed with Companies House also reveal that the firm, which provides agronomy advice and sells crop protection products, recorded a 9% drop in turnover to £290.034million, from £319.095million previously.
In his strategic report accompanying the accounts, the company’s chief executive officer, David Downie, said the firm had delivered a solid performance against a backdrop of unsettled wet weather during the third quarter.
“Sales margins were slightly adverse and trading conditions limited service revenue and volume development,” added Mr Downie.
“There was an excellent recovery in trading during the fourth quarter with very strong volumes within the crop protection sector, recovering some of the shortfall experienced in quarter three.”
He said the firm’s seed and nutrition businesses had experienced excellent progress and a strong set of financial results in the year. “Key focus areas include an improved mix of value added applications that incorporate nutrient mapping, high specification seed advice and varietal selection, precision applications and variable input prescriptions,” said Mr Downie.
He said the company incurred exceptional costs of £1million as a result of termination payments arising from the restructuring of the company’s operations in the year, however this was offset by an exceptional income of £1million profit on the disposal of an investment.
The accounts also reveal that the highest-paid director at the firm took home a pay cheque of £313,000.
During the year the company employed an average of 655 staff. Its Scottish operations include bases at Alford, Culbokie, Forres, Forfar, Turriff and Perth.
