Agri-Shop Ltd
Farminguk
27 May 2016 | Online since 2003
Auto Trader Ltd


5 March 2014 05:00:39|Finance,News

Openfield Group turnover decreases


Openfield Group, the farmer-owned grain marketing and farm inputs business, has reported an 8% decrease in turnover on the back of higher than average commodity prices.
This is reflective of the significant challenges arising from the poor 2012 harvest which hit both quantity and quality of UK farm production, the group said.
The primary impact on the Openfield business of the 2012 harvest was the disappearance of the export markets for UK crops which resulted in longer stock holdings and a near threefold increase in interest charges from £0.6m to £1.8m.
Consequently, profits before tax fell from £2.6m in 2012 to breakeven in 2013, a creditable result in the circumstances.
Net Assets increased by £1.1m or 5% to £21.2m reflecting actuarial gains on the now closed defined benefit pension scheme partially offset by property devaluations following the five year property valuation exercise required under UK generally accepted accounting principles (GAAP).
Whilst borrowings for the 2013 year end increased, from a net debt position of £8.2m in 2012 to a net debt of £28.6m in 2013, this was entirely linked to the working capital cycle with old crop stock being held for longer to service the consumer demand before new crop was available.
Net debt fell substantially in the immediate post year-end period, as expected. Openfield has no core debt utilising cash primarily to invest in stock and undertake price hedging activity.
“The results confirm our continued progress to building a solid business that places the farmer at the heart of the grain supply chain while capturing value for our members and delivering excellent service to our supply chain customers,” said Openfield Chief Executive Officer, James Dallas.
“Never was our support for UK farmers more important than in the aftermath of one of the poorest harvests in recent times. Conscious of the difficulty many UK farmers had with their poor quality grains, Openfield determined, as a policy, to work tremendously hard to market those crops in the most advantageous way possible from a members’ perspective.
"This undoubtedly had a negative impact on our profitability but it is entirely consistent with our co-operative principles,” added Mr Dallas.

Download





0 Comment


loginuserlogo
Name

Please enter your name


Email

Comment

Please enter your comment


Post Comment

Your comment submitted successfully.Please wait for admin approval.


Comments

No comments posted yet. Be the first to post a comment

World News

Canada | 27 May 2016
Southern Ontario farmers launch their own weather network

Southern Ontario farmers are building their own weather network to more accurately record how conditions will affect their crops. The AG Grower Daily Dashboard project is designed to give farmers h...


Australia | 27 May 2016
National Australia sees farmers seeking loans to weather crisis

National Australia Bank Ltd., the nation’s largest lender to farmers, is expecting its dairy clients to seek short-term credit to assist them as slumping milk prices have thrown the industry into a cr...


USA | 27 May 2016
Central Indiana county approves livestock farm restrictions

A central Indiana county has approved new restrictions on big livestock farms limiting where those farms with hundreds or thousands of animals can be built. The ordinance approved this week by the ...


Ireland | 27 May 2016
Dairy farmers' income plight in spotlight

IFA president Joe Healy, who met with EU Agriculture Commissioner Phil Hogan in Brussels, said the majority of dairy farms will be in the red this month. He urged the Commissioner to act without de...


Canada | 27 May 2016
The changing face of Canada's farm industry

Mapping the evolution of Canada's farm industry is not as simple as just examining the numbers. Every five years, Canada's federal government asks us to provide details on who lives in our househol...



Trending Now

Viewed
Discussed

Farms and Land for sale

PropertyLocation
PropertyAgent
PropertyMinimumPrice
PropertyMaximumPrice
PropertyCategory

Holiday Rentals search

AccommodationKeyword
AccommodationType
AccommodationCounty
AccommodationStarRating


Top stories you may have missed
closeicon
Username
Password