Market opportunities in the UK should help offset any loss of trade with Europe in the event of a no-deal Brexit, claims the managing director of Millers of Speyside.
In his director’s report with the Grantown firm’s latest annual accounts, Sandy Milne said Brexit posed a risk to the meat processing business in terms of labour supply and exports.
“The outcome (of Brexit) at this stage is unknown, although I am hopeful that there will be some form of trade agreement which will therefore have minimal impact on the business,” said Mr Milne.
“If there is not a trade agreement, then the opportunities that presents us within the United Kingdom should offset the reduction in our EU exports market.”
The accounts, filed with Companies House, reveal the company recorded turnover of £18.487 million and pre-tax profits of £305,998 for the year ended January 31 2019.
This compares to turnover of £25.309m and pre-tax profits of £10,231 for the 17-month period ending January 31 2018.
Mr Milne said: “On an annualised basis turnover is broadly similar to the previous year. The gross margin increased by 1.59% due to the price of cattle.”
During the year, the bulk of sales, or £14.84m, were in the UK, with sales to the rest of Europe worth £3.314m, and sales to Asia worth £332,175.
Mr Milne said he was satisfied with the financial position of the company at the year end.
The firm’s net asset position strengthened in the year to £1.373m from £1.151m before.
“The business environment in which we operate continues to be challenging and competitive,” Mr Milne added.
“This is unlikely to change for the foreseeable future.”
The accounts also reveal the firm, which slaughters cattle and pigs commercially and for private clients, employed an average of 35 staff in the year.