Countrywide Farmers plc (CWF), the UK’s leading farming, equestrian and rural supplies business, has reported a profit before taxation for the year of £0.2 million compared with a loss of £3.0 million in 2005.
At yesterdays Annual General Meeting, CWF Managing Director, John Hardman told the company’s shareholder that improvement had been achieved against a background of difficult trading conditions in the farming sector. Continued expansion of the company’s successful Country Store retail business had been maintained.
Mr Hardman welcomed the turn round in the company’s trading performance. He reported that success had been a combination of reduced overhead and better market performance coming through from reorganisation taken account of in the 2005 accounts.
He said the company was also pleased to report profitable growth in the alternative feeds market, a doubling of profits in the retail division, further growth in fuel and LP gas volumes.
Countrywide Farmers also announced that they have attracted a new Finance Director, Les Collins, who joins from Piccadilly’s Fortnum & Mason, where he was Finance Director and Company Secretary for the last 6 years. He joins the business on 13th November.
CWF Chairman, Mr John Pugh, said that the company had been active in realising value for sites no longer required for trading.
“Our Evesham site has been sold and our store relocated to a location on the Evesham bypass. We realised £6.8m from that change which, after expenses, translates to £6.4 million. The transaction provides for us to receive further consideration dependant on planning and there will be a substantial capital gains tax bill to pay. Once we are clear on the net proceeds we will consider with our bankers whether a permanent reduction in our facilities is appropriate.
“We continue to look at opportunities to realise value from our property portfolio where appropriate – typically where the value of the site exceeds the returns we earn from it and an alternative-trading location can be secured.
Mr Pugh also announced that CWF, which now has its shares quoted on the Sharemark Trading Exchange, will be producing an interim report, including the accounts for the first half year. This will be published early in 2007 and distributed to shareholders as well as being placed on the company’s website. CWF will issue an interim trading statement at the same time.
