Fengrain returns strong performance
The latest results from Fengrain show the East Anglian farmer-owned business had another record year with increased profits, membership and tonnage traded.
Financial results for the year ended 31 July 2005, show the Fengrain Group achieved a pre-tax profit of £80,000 - more than double that of the previous year (£38,000) - taking the company reserves to over £2.1m. Twenty-two new members were recruited and a record 780,000 tonnes of grain was marketed.
"The further strengthening of our reserves means that we have a robust business providing confidence for members and customers alike," said Fengrain's Chief Executive, Mark Isaacson.
"Strict financial and management controls, coupled with effective marketing, meant that our pool results for the 2004 harvest gave our members the first class results they expect.
"It has been an eventful year. While we did not enter into the proposed merger with Centaur Grain, Fengrain has continued to move forward apace. We continue to work closely with our customers in seeking operational efficiencies, and the collaboration with Heygates and United Biscuits on the HGCA's Value Chain Initiative has led to some real benefits for all parties. Internally, we have a new IT system in place and have begun a review of our board structure to achieve governance best practice. All this is focused on delivering added value to our members and customers."
Despite the recently announced loss of the marketing agreement with Camgrain Storage, Fengrain is confidently developing a strategy to maintain and build on its role as the leading East Anglian company dedicated to grain marketing.
"The signs are really encouraging," said Mr Isaacson. "In the first two months of our new year we have recruited an additional 35 members. We see that as a ringing endorsement that farmers really value a strong regional business that will work closely with them to maximise their returns.
"We have also launched new contracts for members, under the 'Fenpro' brand. These offer fixed and minimum price contracts for a range of commodities to provide growers with certainty in their budgeting. The take up has been exceptional.
"Fengrain has always stood out from its competitors for its commitment to personal, high quality service levels. As we adapt to new market challenges, this commitment remains unchanged."