MEMBERS of the ANM Group have been delivered a sound financial package by the co-op for the year end to December, 2017, including a range of benefits for their loyalty of ‘ownership’.
Announcing a trading profit of £572,000 against £470,000 the previous year, chairman Peter Watson and the board of ANM should get few queries on their performance against a tough trading backdrop when they face the membership at the agm on April 17.
There is no doubt, though, that some factors have worked in their favour as the decline in the oil-related businesses around Aberdeen has helped the group. 
Its Thainstone Specialist Auction division might have a throughput of a seventh of the livestock business, at £15m, but it has a higher return per unit due to higher commission rates. Business for it has been booming on the back of closing down and insolvency sales of high-end commercial and construction vehicles, while its expertise in valuation has also helped bolster income for this niche sector, including evaluating 30 hotels in the area.
That said, the throughput of £103m-worth of livestock remains the mainstay of ANM and one in which their members gain most benefit.
The total value of members’ benefits last year amounted to £467,000, which included dividends of £147,000; £36,000 in trading bonuses; preferential stocking agreement interest savings of £132,000; commission cap savings of £86,000 and a members’ loan scheme offering them preferential interest which was worth £66,000.
A key feature is ANM’s stock-on and new entrant agreements, which last year supported 239 farmers with £7m-worth of cattle and sheep – that’s an average of almost £30,000 for each agreement.
In trading terms, the numbers of cattle going through the ANM’s  operation centres were slightly down on the year, with sheep slightly up, but the value of livestock held up the trading position.
It will also tell members next week of plans to increase its sphere of operation, both to the north and west and to the south into Perth and Aberfeldy, and has already recruited staff for this purpose.
Like most businesses, though, the group pension fund remains a bit of a millstone, with a deficit of £27.5m, which Grant Rogerson, ANM’s chief executive, said had prompted a new investment strategy. However, he was confident that the strong asset value and trading position of the business will allow it to manage this deficit comfortably.
Also among the negatives has been a huge hike increase in business rates, which has added £45,000 to the cost base. While this is being appealed – indeed ANM were successful in having £244,000 in rate rebates for the previous five years added to last year’s accounts – it would be a bitter blow to have to work for another five years to get similar, admitted Mr Rogerson.
On ANM’s involvement with Scotbeef for a new abattoir in Inverurie, Mr Rogerson said everything was ‘ready to go’ once the ping-pong of planning consent issues were resolved.