Roger Dean: Company Reports and Accounts

Company reports & accounts

By Roger Dean

youngs animal Feeds

This company reported its financial results for the year ending 31 October 2020 on 20 April 2021.

The company’s principal activity is described as the manufacture of prepared feeds for farm animals (SIC 10910).

The company’s principal activity continues to be the manufacturing and distribution of equine and pet food.

In the year ending 31 October 2020, the company generated revenues of £8,883,312, an increase over the previous accounting period of £14,882 or 1.7 per cent. The increase in revenues was assisted by growth in pet food sales; this countered lower demand for equine feeds due to a lack of demand for equine feeds, reflecting the lack of shows and competitions which reduced the demand for high end feeds and supplements.

The company’s cost of sales declined slightly, reflecting a fall in raw material costs. As a result, the company’s Gross Profits increased by 1.9 per cent.

In the current accounting year, the company incurred a non-recurring item regarding its closure of its Huyton branch. As a result, the company’s pretax profits, which in the preceding accounting year had amounted to £18,432, was converted into a loss of £243,096.

The company identifies the principal risks to the company as ‘The continued increases in direct sales by larger competitors, leading to a risk of customer losses in a hardening market’. The company further observed that ‘the impact of increasing raw material prices must be carefully managed to mitigate the risks that the situation presents’.

The company is part of a ‘corporate gross guarantee arrangement’ between companies of the Wynnstay Group PLC.

moore’s animal Feeds

This company was incorporated in 1978 and its principal business is the manufacture of prepared feeds for farm animals.

The company, based in Ballymena, Northern Ireland, submitted its annual report and accounts for the year ending 30 April 2020 on 30 March 2021.

Total sales in the year under review amounted to £24.87 million, £676,026 or 2.8 per cent more than in the previous accounting period. The company has grown its sales over the previous five years. In 2016, the company grossed sales amounting to £16.3 million.

In the current accounting period, the company generated pre-tax profits amounting to £1.09 million, an increase of 25.9 per cent on the previous accounting year.

The company has been consistent as regards its Gross Profitability in recent years. Its average Gross Profit over the past five years was 10.2 per cent, with a range from 10.8 per cent to 9.1 per cent. The latter figure occurred in its annual report for the year ending 30 April 2019 which was characterized by high raw material prices and a highly competitive market place which made recovery of rising raw material costs more difficult to recover.

The company is controlled by its two Directors: Mr. John Moore and Mrs. Margaret Moore

mason’s animal Feeds ltd

This company, which is registered in Northern Ireland, reported its financial results for the year ending 31 October 2020 on 26 April 2021. Its principal business is the manufacture of prepared feeds for farm animals (SIC 10910)

The company’s Director, Mr. C.W. Purdy, ‘considers the results during the year to be satisfactory given the conditions within the conditions within the agricultural sector at present.’ The report noted that the company is exposed to commodity price risk ‘due to movements and the volatility of commodity prices’.

In the year under review, the company recorded sales of £28.79 million, an increase of £962,000 or 3.5 per cent over the previous accounting period. Profits before tax amounted to £413,176 compared to £800,162 in the previous accounting period. This reflected a number of factors including a sharp rise in the cost of raw materials relative to sales value and also increases in the cost of interest and similar charges. The Gross Profit ratio, at 12.9 per cent, was at its lowest in a decade, reflecting the increase in raw material costs relative to sales value.

The ultimate controlling party is the sole Director, Mr. C W Purdy, by virtue of his shareholding in the parent company.

burns pet nutrition ltd

This company submitted its report and accounts for the year ending 31 July 2020 on 29 April 29 April 2021.

The company’s principal activities are described as the manufacture of prepared pet foods (SIC 10920) and the wholesale of grain, unmanufactured tobacco, seeds and animal feeds (SIC 46210). The company also manufactures and distributes feeds for working dogs, including assistance dogs.

The company reported sales in the financial period under review amounting to £21.93 million, down by £840,000 or 3.7 per cent compared with the previous accounting period. The company notes that the business ‘has maintained its strong sales performance with sales over £21 million’. While turnover and gross profit reduced from the prior year, the continued strong performance and cash generation allowed the company to invest in improved facilities and internal systems as well as the ongoing research and development program.

Operating profits in the year under review fell to £2.38 million, a decline of 36.6 per cent on the previous year and pretax profits, at £1.3 million, were down by £2.49 million or 65.7 per cent on the previous year.

The company notes that, in common with other businesses, the external commercial environment is expected to remain competitive in the succeeding year. The departure of the UK from the EU from 1 January 2021 has led to ‘some difficulties’ in distributing to customers in the EU. The company notes, however, that ‘these difficulties are currently being managed’ and are not material to group operating performance. The company insists that it will continue to investigate solutions to ensure that customers in the EU continue to receive high levels of service.

Looking at the company’s performance over the last decade, the Company’s Gross Profit ratio has remained at around an average of 41 per cent while ranging between 36.7 per cent and 45.5 per cent. This suggests that the company has its raw material costs well under control, despite fluctuations in volatile world markets.