Difficult trading conditions in the farming industry have been blamed for a drop in turnover and profits at the main John Deere dealer in the north and north-east.
Accounts filed with Companies House reveal HRN Tractors posted pre-tax profits of £533,650 for the year ended September 30, 2015. This is down 35% on the year before when pre-tax profits stood at £825,127.
Turnover at the Insch-headquartered company was also down in the year by 23% to £25.569million, from £33.139million the year before.
In the accounts, managing director Neil Barclay said: “The company’s trading performance during the year was consistent with directors’ expectations given the difficult trading conditions in the industry. Whilst turnover has decreased from the prior year, gross margin has increased from 10.5% to 14.2%.
“The increase in gross margin is largely due to the sales mix achieved in the year and the company continuing to keep overhead expenses under tight control, with close monitoring of key areas throughout the business being fundamental to its success.”
The company, which also has depots at Turriff, Kinloss, Muir of Ord, Caithness and Balbeggie in Perthshire, employed 85 staff in the year.
Mr Barclay said the company’s operations had generated healthy cash flows and the balance sheet remained strong.
“The continued investment in cost management and efficiencies should ensure that the company maintains and continues to improve its performance and customer service levels going forward,” added Mr Barclay.
HRN also has a specialist export company, Agritrac Exports, which launched in 2004 and is based near Stirling.
The latest accounts for the firm, which cover the year ended May 31, 2015, reveal a drop in turnover and profits.
Turnover at the firm was down 22% to £6.997million, from £8.992million the year before.
This was against a 46% drop in pre-tax profits to £182,180, from £340,750 previously.
The bulk of sales, £5.902million, were to the UK, with the remainder overseas.
