NORTH-EAST co-operative, ANM Group, has reported a trading profit of £470,000 for the year ending December, 31, 2016, achieving a discretionary members’ trading bonus for a third year. 

Much of this was as a result of additional throughput and revenue generated in the auction side of the business. There was a 1.5% increase on the year on livestock sales, which saw cattle throughput remain similar at 83,500 and sheep throughput increase by 17,500 to 311,000. Combined with lower operational costs and depreciation charges, the businesses' trading profit of £470,000 was well ahead of the £354,000 in 2015. 

Share capital also improved, with an increase of £356,000 on the year as shareholders recognised the value the group brings its members, said ANM. 

Group board chairman, Pat Machray, who retires from the role at the group’s agm on April 18, said although there are still many challenges to face as an industry, the group’s balance sheet remained strong. Mr Machray, who previously was a previous chief executive at the co-op’, said that the support received by members within the balance sheet was encouraging, with a significant increase in member shareholding. 

While the group has seen livestock sales remain steady, executive director, John Gregor, commented that the lower market average value of cattle traded of £46 (4.5% average decrease per head) impacted on commission earnings, resulting in total value of sales being down £2.2m for the year. He said: “I am pleased to report a positive result for the core livestock divisions. Despite some challenges in 2016, it is pleasing to see more members and customers using their co-op’ and bringing livestock from a wider geographical area.”

Mr Gregor also added that, in 2016, the group supported 252 livestock farmers through the stock on agreement scheme, with £7.7m worth of cattle and sheep financed by the group. In addition, the new entrant’s scheme, which is in its fourth year, provided funding and assistance to an additional seven farms across the north and North-east. 

The group also remains committed to supporting the farming sector with new ‘Farm profit programme: Making livestock pay’ – an initiative which aims to improve the technical performance, efficiency and profitability of six diverse focus farms in the group’s trading area. 

Chief executive, Grant Rogerson, said despite the uncertain times which they are facing, he is pleased to report on the good progress made. “Pressure on the farming sector remains. Pressure on prices, costs and confused CAP payments are all being felt across the sector, coupled with Brexit, land reform and the current state of the North-east economy.”

The group’s core businesses, Aberdeen and Northern Marts and Thainstone Specialist Auctions, as well as Aberdeen and Northern Marts (Estates), recorded an increase in the trading profit for 2016, backed by the combination of increased throughput in machinery, specialist and vehicle sales, as well as increased sheep numbers.

“The hard work of our livestock team and support of our customers has resulted in a significant increase in the throughput of sheep and maintained cattle numbers”, Mr Rogerson added. 

Likewise, Thainstone Events, including its Porterhouse restaurant and coffee bar, saw a return to profitability, with a 38% increase in sales, as well as Thainstone Exchange attracting sell-out crowds, particularly around the festive season. 

With a large investment made in improving the facilities at Thainstone Centre – including new webcams which allow members and customers to watch sales live and stream live on Facebook, reaching more than 18,000 people during one event – both Mr Machray and Mr Rogerson commented on the rejection of the Thainstone Business Park and the impact on the new abattoir for Scotbeef Inverurie. 

“It’s a great opportunity and a real goal for us this year. We continue to work hard with Robbie Galloway and Scotbeef on this project and we feel and understand the frustration from our members and customers on the lack of progress,” said Mr Machray.