Despite low grain prices and stiff competition Gleadell Agriculture has posted a profit for the eighth consecutive year, and traded over 1.4 million tonnes of grain.
The results show that Gleadell, the UK's fifth largest grain trading business and number one exporter, produced a profit before tax figure of £1,598,000 for the twelve months to 30th June 2003.
This is an improvement of over £1 million on the comparative period in the previous year. The 2001/2002-year showed a healthy profit of £527,000, despite a difficult year that saw other agribusinesses struggle. The company has a net asset value of £3 million, an increase of £1.5 million in the past six years.
Managing Director Jon Duffy said: "Our results establish Gleadell as a company positively managing change at a time when grain trading in the UK has been redefined.
"We believe around £100 million of losses have been incurred by the UK co-operative and merchant trade in the past few years with a resulting massive restructuring. Farmers have to know that a company is safe to deal with. Despite these recent changes private trading companies still have a valuable and leading place in the market. We want our farmer customers to be making money and in return our farmer customers want to be dealing with a partner who is able to invest in the future of agriculture through a healthy profit stream."
Gleadell, based near Gainsborough in Lincolnshire with offices in Norfolk and Yorkshire, is one of the fastest growing grain businesses in the UK, with vital European links through its shareholders. Employing 40 staff at the three locations Gleadell has a trading volume of 35,000 tonnes per employee, a figure Mr Duffy believes is unique within the UK.
"The Directors consider our results to be a reflection of the dedication and skill of Gleadell staff as well as the commercial backing of the shareholders, with attention to detail and rigorous cost control."
Traded volumes of 1.4 million tonnes reflected the larger crop but also Gleadell's increasing success in pool marketing and with buy-back contracts.
"At a time of increasing volatility farmers have benefited from the positive partnership approach employed by Gleadell. Farmers are safe in the knowledge that their crops have a destination and that risk is managed for positive benefit," said Mr Duffy.
The company recently published results confirming it was top of the combinable crop exporters with figures for last season of 814,000 tonnes.
"Our exports jumped nearly 44% in the second half of the season from 334,000 tonnes for July to December 2002 to 480,000 tonnes from January to June 2003," said Mr Duffy. "The change in import tariff rules opened the door, but our strong links to the international trading network through AC Toepfer and Union InVivo contributed to the majority of the increase."
But Gleadell is more than just an exporter. It is also a leading supplier to UK maltsters, millers, compounders and oilseeds crushing plants with 43% of traded tonnage going to domestic markets last season.
Gleadell is a centre of excellence for seed and fertiliser. The company is keen to develop markets for new seed varieties and improved fertilisers that give farmers a competitive advantage and show them a positive return.
"There is a quote from one of our historical documents that is as applicable today as it was when first written. 'For a business to survive and thrive for a century, or more, is not unique, but it is a reflection of the careful investments of profits and the tremendous support and loyalty of both customers and employees'," said Mr Duffy.
