February 18, 2014
Harbro Group reports nearly 23% rise in 2013 sales
Harbro Group, the Turriff, Aberdeenshire-based animal feed and farm supply firm, reported double-digit sales and profit growth for the 2013 year ending June 30, helped by increased volume sales during the winter of 2012-13, market growth and increased penetration in the English and European market.
Sales rose nearly 23% on the previous year to £104.7 million (US$175 million) and pre-tax profits rose 75% to £4 million (US$6.7 million). The bulk of sales of £103.7 million (US$173 million) were generated in the UK market, though sales in Europe rose to £861,000 (US$1.4 million), up from £244,000 (US$407,000) reported for the year 2012.
Last year the group has reported a 6% dip in pre-tax profits to £2.78 million (US$4.6 million) despite turnover rising £7.4 million (US$12 million) on the previous year to £85.3 million (US$142 million).
Profits in 2012 were hit by one-off costs liked to outlay for a new information technology (IT) system along with increased borrowing and raw material costs.
The company''s net debt was cut to £7.1 million (US$11.8 million), down from £9.62 million (US$16 million) last year.
Harbro Group anticipates "significant investment" will be required in the next two years at mills in Birkhill, Lanarkshire and Tore, Inverness, which will include improvements to site infrastructure and modernisation of the production process.
The group said its branded retail operation, Country Store, also performed "very well" in the 2013 year, with the £690,000 (US$1.1 million) acquisition of Border Farm Supplies Ltd in 2012 having "increased geographical spread".
Harbro also notes two deals agreed after the year-end reporting period: a deal to acquire Camling Farm Shop and acquiring the remaining 24% stake in Transpan Ltd.