Mole Valley Farmers chalks £7.6m trading loss

Agricultural supply business Mole Valley Farmers made a group operating loss of £7.6m in the year to 30 September 2023.

A “significant external IT incident” in August last year was cited as one of the reasons behind the loss and was estimated to have decreased revenue by at least £4m.

The incident led to the closure of the group’s retail stores for a period last August, and email orders from farmers were also compromised. 

According to the company’s accounts, last year was described as one of the most challenging trading years in the company’s 63-year history.

See also: Mole Valley Farmers issues loyalty bonus to farmer shareholders

Total group turnover declined marginally from £615m to £610m during the financial year.

A full operational review was carried out by the group as a result of the difficult trading conditions to help strengthen the business moving forward.

Mole Valley Farmers chief executive Jack Cordery said: “Falling raw material markets impacted profitability as we reduced significant stockholding positions, particularly in our feed and fertiliser business.

“A falling milk price inevitably hit confidence among dairy farmers, and the unseasonal weather – with prolonged wet periods in the early spring and then summer – reduced demand across many of our key agricultural product lines.

“To then experience a significant external IT incident last August, which targeted our core operating systems, resulting in a period of significant trading disruption, was extremely disappointing.”

The business sold more than 776,000t of feed, 12,000t of minerals, and 88,000t of fertiliser during the year.

Outlook

Mr Cordery added: “Despite a challenging outlook for the agricultural sector, unpredictable weather and pressure on farmgate prices, we are well supported by customers and suppliers across all areas of our business.

“We have continued to invest, including in our new dedicated organic feed mill in Uffculme located on the Devon and Somerset border, our Soil to Silage service, which provides a holistic approach to soil and forage management, and our specialist teams who provide industry leading advice and expertise.”