Revenue drops by 25% at Frontier but profits hold at £40m

Revenue at grain merchant Frontier Agriculture dropped by £600m on the year to total £1.76bn for 12 months ending 26 June 2024, as a result of lower UK plantings for the 2023-24 crop year.

The challenging planting conditions in autumn 2023 resulted in a reduced UK crop area, which lead to fewer sales of sprays and fertiliser by the firm.

Lower commodity prices for grain and heightened volatility on global markets also played a role in the reduced turnover.

See also: Frontier appoints Diana Overton as new managing director

Despite a lower revenue, Frontier made a profit before tax of £40m, which was roughly in line with year-earlier levels.

The group employs more than 1,200 staff across its crop production and grain marketing business, and more than half of the group’s gross profits were obtained through crop input and advisory services.

Frontier has also invested in a number of ancillary businesses including Oxbury Bank, Yagro Analytics, and Navara Oat Milling.

Last year, Frontier also invested in low carbon fertiliser manufacturer CCm Technologies.

Frontier group senior executive director Mark Aitchison said: “Like many of our farmer customers, diversifying income streams in parallel with volatile trading activities provides some security of earnings.

“Our adjacency investments are all in areas we believe can benefit our customers, providing for us both the opportunity to bring more certainty.

“Robust earnings enable us to invest in the core business at a consistent rate during periods of downturn, and ensures we continue to develop products and services for the future.”

Diana Overton, managing director at Frontier Agriculture, added that the group’s investment in Oxbury had proved successful.

She said: “Its dedicated commercial team understands farming and can deliver personalised financial solutions, with a unique combination of face-to-face service and speed of action built around an agile digital platform.”