ANM delivers strong 2019 outturn against a challenging backdrop

10/04/2020
ANM Group, the leading farming co-operative based at Thainstone, has published its Annual Report to 31st December 2019, posting a trading profit for the year of £245,000. Share capital at year end had increased by £309,000 to £6.835m, with an overall increase in balance sheet value of £1.3m.

The impressive results were delivered against a backdrop of uncertainty over Brexit, a factor throughout the 2019 accounting period, as well as continuing pressure on livestock selling prices and the impact of rising external cost pressures. As a result, trading profit was down from the 2018 figure of £498,000.

While livestock trading values have generally seen a drop nationally, ANM has consistently achieved the best price per kilo in Scotland. January 2020 saw the introduction of a significant change to livestock commission rates, reducing to as low as 3% for members as part of ongoing efforts to deliver greater value for shareholders.

ANM Group Chairman, Peter Watson welcomed the results, saying:

“This is a very welcome trading surplus for the year, given the challenges and drop in values across the wider livestock industry. The further increase in share capital this year is outstanding testament to the confidence that members of the co-operative have in our business. They are continuing to benefit from our wide range of membership benefits, including reduced commission rates introduced for the start of 2020.”

Grant Rogerson, Chief Executive of ANM Group welcomed the annual results publication:

“Our annual results demonstrate that the fundamental commitment on which our cooperative is founded - delivering for our members, customers and community - has served us well despite a very challenging background. Given today’s unprecedented trading environment, that solid foundation will continue to underpin all that we do.

“We continue to benefit from the diversity of our operations across all our group activities.The strength and hard work of the teams across our livestock, specialist auctions, estates and events businesses has resulted in a very satisfactory set of trading figures for 2019. This, in addition to a relentless focus on innovation and growing the business, has allowed us to continue to deliver a first class service and strong returns for members.

“Our drive to innovate will continue - this year has seen further investment in our property portfolio, strengthening assets and our balance sheet. Long term projects like the Thainstone Business Park extension will continue to drive future value for the Group and the regional economy.”

On Coronavirus, which occurred after the conclusion of the 2019 financial year, Mr Rogerson has stressed the company’s determination to continue offering a strong service to livestock producers, whilst complying with rigorous public health restrictions.

Mr Rogerson added:

“We are confident that ANM is in a strong position to withstand the challenges of coronavirus, and are rigorously implementing new industry guidelines on safe operation through the pandemic. This is clearly not business as usual, and the pandemic does bring uncertainty, but our full service is available for selling through the ring at Thainstone and Caithness. In addition, we are leading pioneers with new technology and are the first auction company in Scotland to implement live online bidding for our weekly livestock sales. We’re committed and working exceptionally hard to continue supporting our local producers
and early evidence is that we are maintaining good throughput.

The 2019 Annual Report is available here.