Simpsons Malt has reported a solid set of financial results for 2019 with strong performances in both its malting and agricultural sectors.
The fifth generation, family owned company, which includes agricultural merchanting divisions McCreath, Simpson & Prentice (MSP) and John Guthrie, delivered a profit before tax of £9.8million (2018: £7.5million) and an increased turnover of £168million (2018: £156.6million).
One of the key reasons behind the increase in both profit and turnover was a rise in malt sales volumes through increased plant utilisation. The company’s unique and well-invested infrastructure ensured that the malting business secured sufficient raw material following an extremely difficult 2018 harvest to deliver a supply of high quality malt throughout 2019.
The merchanting business also performed well as it continues to benefit from the company’s integrated supply chain, delivering strong farm input sales of fertiliser, seed grain and agrochemicals during the first half of 2019.
The company continued investment in infrastructure throughout 2019 at its two sites in Berwick-upon-Tweed, Northumberland – where the company is headquartered – and Tivetshall St Margaret in Norfolk, with capital expenditure of £3.3million (2018: £2.9million).
Speaking about the financial results for 2019, Simpsons Malt Managing Director Tim McCreath said: “We’re delighted with the performance of the company over the last 12 months with both our malting and merchanting divisions reporting increased contributions.
“Looking ahead to 2020, malt demand in both the distilling and brewing sectors continues to be strong and the prospects for the malting business remain positive.
“The merchanting business faces challenges due to weather patterns in the autumn of 2019 and currently. However, the company’s infrastructure should allow us to mitigate those challenges and enable this side of the business to deliver another positive contribution.”