Openfield Group Limited has reported its results to 30 June 2017. Measured against their priority to deliver service and value to their members, Openfield performed well during the year, significantly outperforming the market in terms of value achieved for pool results and thus the returns to its farmer members. Its UK domestic market share also grew considerably.
In terms of financial results the Group posted a pre-tax loss of £3.3 million (2016: Profit of £1.7m), in very tough trading conditions relating to lower 2016 harvest volumes and market dynamics relating to milling wheat premiums. The core financial strength of Openfield remained strong with net assets reported at £18.5m (2016: £20.8m), no core borrowings and a surplus working capital of £4.9m (2016: £7.7m).
Commenting on this performance, Openfield’s new chairman Philip Moody said: “The results reflect very tough trading conditions coming out of a small 2016 harvest. Openfield has always managed its own profitability to strike a balance between maintaining our financial strength and balance sheet and supporting our members in challenging marketing years, which we continued to do last year. We are also very pleased to note that our membership grew by 19%, which continues to strengthen our future growth plan.”
Openfield’s strategy is to work with their members and some of the best know British food and drink brands to create vertically integrated supply chains that drive value and service. Openfield is always looking for new ways to increase quality and efficiencies and last year saw a £250,000 investment within a state of the art seed production plant and the renewal of their in-house truck fleet technology to further improve collection and delivery efficiencies of their cereal, seed and fertiliser businesses.
Openfield performance to June 2017:
- Group revenue down 8% to £655m;
- Grain volumes reduced to 3.9m tonnes;
- Total members grew significantly to 3926, up 19% from 3204 in 2016;
- Pre-tax loss of £3.3m compared with a profit of £1.7m in 2016.