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Mole Valley Farmers Annual Report Shows Growth In Market Share

Mole Valley Farmers Publishes 2015 Annual Accounts

Mole Valley Farmers Annual Report Shows That We Are Dedicated To Supporting Our Farmer Members

Low market returns across the farming sector in conjunction with a substantial level of deflation has understandably made it an extremely challenging trading year for both the company and our farming members.

Notwithstanding these challenges Mole Valley Farmers has managed to maintain revenue levels with turnover for the year ending 30th September 2015, remaining comparable to last year at £422m. This represents a like for like annual growth of 8% or £35m, before effects of deflation.

Competitive trading, strengthened by the continued support of its farmer shareholders, members and customers has been a significant factor in achieving these results. However, reduced discretionary spending on farm inputs throughout the year, combined with unseasonal temperatures and pre-planned investment commitments, overall profit before taxation as anticipated has reduced in the year.

Mole Valley Farmers chief executive, Andrew Jackson says: “Although underlying profit has reduced significantly from the previous year, a healthy EBITDA £6.8 million was achieved reflecting the continued investment in the company, supported by some very positive compensatory growth which was been sustained by remaining resolute to advancing and maintaining a strong competitive pricing lead for agricultural inputs and rural supplies” The solidarity of the balance sheet remains robust, with net assets of £46.5m and net current assets increasing to nearly £20m.

The business has continued to invest prudently, with Cash flow expenditure on fixed assets in the year totaling £6.3m. 

Mr. Jackson explains that the ruminant business experienced some strong growth in the year, which is a reflection of Mole Valley Farmers’ commitment to providing quality products supported by a comprehensive service offering to customers.

“We have continued to challenge our operational practice and, where relevant, advance the proficiency of our feed business. It is satisfying to report that recent investments in our production facilities are already assisting in realising some meaningful enhancements that we believe are benefitting the company and our feed customers alike,” he says. The company managed to increase volumes by 13% in the year taking aggregated dairy compounds and alternative feeds, volume in the year to over 750,000 tonnes.

However, this has probably been one of the hardest years the business can recall for Mole Valley Forage Services, due to farmers consciously trying to reduce fertiliser usage. Assessment suggests demand for fertiliser on a national level is down 10-15% on the year. As a result, revenue from conventional fertiliser dropped to £25.6m.

Overall, retail has had a testing year with mixed performance between stores. Whilst like for like store sales across all retail stores grew to £193.5m, store revenues did not meet expectation. Key farming categories featured strongly, with basket spend reducing, but numbers of transactions increasing by 2.1% equating to over £2m.

In what has been a challenging year for everyone, Graeme Cock Chairman stresses that Mole Valley Farmers is committed to supporting its farmer shareholders in the long-term.

“It’s at times like this that our values and sense of purpose are as important as ever in trying to help the farming community whilst they remain predisposed to an uncertain outlook,” he says.

“Hopefully, our results this year demonstrate that under very challenging circumstances, the Management teams have done their utmost to meet with shareholders’ and customers’ requirements and remain resolute in producing and supplying quality products at competitive prices, regardless of the pressure on margins.”

Source Details

Julie Edwards, Head of Agricultural Affairs & Communications, Mole Valley Farmers

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