North-east tractor dealer Sellars Agriculture saw a fall in both turnover and profits last year as a result of farmers buying fewer combines.
The Oldmeldrum-based firm, which is one of Scotland’s main Claas dealerships, saw pre-tax profits fall to £396,671 in the year ending September 30, 2013.
This was down 40% on the year before when pre-tax profits were £662,956.
Turnover for the year was also down 12% to £31.884million, from £36.235million previously.
In accounts filed with Companies House, Sellars said: “The external commercial environment is expected to remain competitive in 2013/14 due to exchange rate volatility and the price of grain and livestock.
“However, the directors remain confident that the company will continue to maintain its current level of performance in the future.”
Managing director Neil Wattie said the reduction in profits and turnover last year followed a record year in 2012.
He said farmers had bought fewer big ticket pieces of kit, such as combine harvesters, last year and buyers had remained cautious over the past six months.
“We are going to have an OK year turnover wise, but I’m a bit more concerned about 2015. Grain prices and beef prices have dropped,” Mr Wattie told the Press and Journal.
He said he hoped the caution would leave the market place now that details of the Common Agricultural Policy reform package had been unveiled.
Sellars, which also has bases at Forres, Huntly, Cupar, Perth, Letham in Angus and Newbridge, employs around 80 staff.