Grain merchants show improved finances in company accounts
© Tim Scrivener Profits increased on the year for most of the major UK grain merchants during their 2021-22 financial years.
The financial resilience of grain traders is a critical consideration for farm businesses.
It has become especially significant in recent years with volatile and unpredictable grain markets due to the pandemic and war in Ukraine.
See also: Attacks on Ukrainian grain stores shock cereals markets
The collapse of Scottish grain trader Alexander Inglis & Son in 2021 left many farmers out of pocket and this demonstrates the potential risks to farm businesses when trading agricultural commodities with merchants.
Summary of performance
A table (right) was compiled by grain industry adviser and experienced trader Richard Whitlock using information made publicly available by Companies House – “errors and omissions excepted”.
The table provides an annual summary of how each of the companies fared, and shows UK grain traders with more than £1m in net assets.
Pre-tax profits as a percentage of net assets varied between the merchants, with a range of 7.2% to 57.4%.
Mr Whitlock said: “All farmers should regularly check the creditworthiness of their customers. After all, not being paid is far worse than taking a slightly lower price.”
The financial year varies between companies, with some ending in December 2021 while others run through to 2023, a period when the war in Ukraine significantly influenced global grain markets.
Accounts for the next financial year are expected to show an increase in turnovers due to a prolonged period of higher prices during 2022.
Grain merchants’ 2021-22 financial performance |
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|
Registered company name |
Net assets |
Net profit on turnover |
Turnover |
Last year profit before tax |
To year end |
|
Frontier Agriculture* |
£277.1m |
2.1% |
£1,842.5m |
£39.03m |
Jun 2022 |
|
Wynnstay Group |
£130.7m |
3.0% |
£713mm |
£21.12m |
Oct 2022 |
|
Simpsons Malt inc MSP & Lindsay |
£90.6m |
3.3% |
£214.2m |
£7.11m |
Dec 2021 |
|
ADM Agriculture UK* |
£72m |
0.5% |
£1,092m |
£5.17m |
Dec 2021 |
|
Cefetra* |
£42.7m |
0.2% |
£1,240m |
£3.06m |
Dec 2021 |
|
GrainCo |
£24.6m |
2.6% |
£214.3 m |
£5.61m |
Jun 2022 |
|
Saxon Agriculture* |
£23.9m |
3% |
£137.9m |
£4.18m |
Sep 2022 |
|
Harlow Agricultural Merchants |
£21.6m |
5.1% |
£69.5m |
£3.5 m |
Jan 2022 |
|
Openfield Agriculture |
£18.6m |
0.6% |
£669.7m |
£3.72m |
Jun 2022 |
|
Viterra UK* |
£16.6m |
0.7% |
£388.8m |
£2.76m |
Dec 2021 |
|
Cofco International UK* |
£14.6m |
1% |
£200m |
£2.09m |
Dec 2021 |
|
United Oilseeds Marketing |
£14.1m |
1% |
£174.5m |
£1.79m |
Jun 2022 |
|
Frederic Smart & Son |
£10.6m |
4.8% |
£43.8m |
£2.11m |
May 2022 |
|
Bartholomew’s Agri Food |
£9.9m |
1.2% |
£163.8m |
£1.97m |
Dec 2022 |
|
North Herts Farmers Grain |
£6.1m |
0.7% |
£104.4m |
£0.77m |
July 2022 |
|
Borders Grain |
£5.6m |
** |
Apr 2022 |
||
|
Armstrong Richardson & Co |
£5.4m |
2.3% |
£38.2m |
£0.87m |
Dec 2021 |
|
Charles Jackson & Co |
£4.8m |
4.1% |
£33.6m |
£1.36m |
May 2022 |
|
James Mortimer |
£4.6m |
2.2% |
£27.3m |
£0.59m |
Mar 2022 |
|
Argrain |
£4.2m |
2.7% |
£81.7m |
£2.23m |
Jun 2022 |
|
Johnson & Saunt |
£3.7m |
** |
Jun 2022 |
||
|
Dewing Grain |
£3.7m |
3.1% |
£35.5m |
£1.09m |
Jun 2022 |
|
Adams and Howling |
£3m |
** |
Mar 2022 |
||
|
G Williams & Co (Grain) |
£2.8m |
** |
Feb 2023 |
||
|
Robin Appel |
£2.6m |
2.3% |
£62.6m |
£1.47m |
Mar 2022 |
|
AL Cox & Sons |
£1.7m |
** |
May 2022 |
||
|
Bodle Bros |
£1.5m |
** |
Feb 2023 |
||
|
Chilton Grain |
£1.4m |
*** |
Jun 2021 |
||
|
Jewers Grain |
£1.2m |
** |
Jun 2022 |
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|
*Part of a multinational **Small company exemption ***Small company exemption, extended account period. Source: Richard Whitlock/Companies House |
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