Scotland’s largest red meat business – J.W. Galloway – has bounced back with a threefold increase in pre-tax profits for the year ending March 3, 2013.
In accounts filed with Companies House this week, the family-owned business which owns Scotbeef, Vivers Scotlamb and Scotbeef (Inverurie), revealed a 307% jump in pre-tax profits to £4.15million from £1.02million previously.
Turnover for the group increased 7% in the year to £233million, from £218million previously. UK sales were up 14% to £185.8million, while exports fell 15% to £46.8million. The firm experienced a difficult trading year in 2012, when pre-tax profits fell 85% to £1.022million from £7.089million.
In a report filed with the accounts this week, the group said: “Livestock prices continued to rise throughout the year driven by availability and feed costs.
“Continuing economic pressures in the UK retail market made it difficult to pass on all of these increases, however increased volumes improved operational facility.”
He said the directors remained confident the group was well placed to continue to grow and trade successfully.
Figures for Scotbeef showed a 315% increase in pre-tax profits to £3.896million from £938,000 the year before.
Turnover was also up 9% to £211million, from £193million previously. This was driven by a £23.4million increase in UK sales to £183.27million, while exports fell £5.5million to £27.7million.
Meanwhile, accounts for Annan-based Vivers Scotlamb reveal a 325% increase in pre-tax profits to £259,000, from £61,000 previously.
This is against a 10.5% drop in turnover to £28million, when both UK and export sales fell.
Directors said in their report they were confident the company will continue to grow and trade successfully, despite the troubled European economy. Staff numbers were down across the group from an average of 774 over 2012 to 749 at the year-end.
The unnamed highest paid director saw their emoluments increase £27,000 to £203,000.
The accounts also disclose the financial arrangements surrounding the purchase of Scotbeef Inverurie in which J.W. Galloway has a 70% stake. Scotbeef Inverurie was created through the merger of the ANM Group’s former loss-making Scotch Premier Meat subsidiary and the independent Mathers of Inverurie meat process businesses.
The inference had always been J.W. Galloway would be investing in a new abattoir on ground being made available by the ANM Group at its Thainstone Centre business park at Inverurie. A decision on that investment is due imminently, according to what chairman Ian Galloway said in December.
But the accounts reveal: “As the directors anticipate this investment (70% of the share capital of Scotbeef Inverurie) to be disposed outwith the group within one year of acquisition the investment is treated as a current asset. During the period JW Galloway provided a loan of £1.105million which is still outstanding at the period end and included within other debtors.”