Group balance sheet ‘in good shape’

Despite operating in tougher trading conditions, the H&H Group's balance
sheet is in good shape, its house is in order and its staff remain focused upon the tasks ahead. This was the message from chief executive Trevor Hebdon to a large gathering of shareholders at the H&H Group's annual meeting on October 28.

In the pink: H&H Group directors, shareholders and staff donned pink for the “Wear it pink” breast cancer campaign on the day of the Group’s annual meeting on October 28 raising £332 which the Group topped up to £400. Joanne Crozier bought the agm flower arrangement for £60 at auction. Standing, left to right, Alan Bowe, Dawn Harrison, Trevor Hebdon, Margaret Irving, John Robson and David Trimble, front, Caroline Neile, Edith Jones and Jen Roper.

"Our balance sheet carries a significant freehold property content; our debtor book remains clean as a result of our ongoing and robust credit control measures and sensible provisioning policies; we have an extremely strong capital base, well positioned to withstand any short term blips and to grow the business for the future," said Mr Hebdon. "In other words we are in good heart."

Mr Hebdon said the Group was in direct discussions with interested hotel operators over the proposed commercial development of 10 acres of land immediately to the south of the main Borderway site. He said the value of the development site had been significantly enhanced since 2002 prior to the submission of the initial planning application and all costs associated with the planning process, call-in and public enquiry, which had a successful outcome, had been met outwith profit and loss.

Against a background of external global, as well as UK, economic influences placing pressures upon profit margins, particularly those of the farmstock business, the Group needed to continue to "batten down the hatches". "As well as seeking ways of increasing existing and new income streams we need to continue to closely monitor, contain and, where possible, reduce our cost lines to ensure that our business remains both profitable today and sustainable into the future," said Mr Hebdon.

During the three months to the end of September the group had traded profitably albeit slightly below the profit for the same period in 2004.

Forecasting profit through to next June's year end, Mr Hebdon said there was no doubt that the economy at large was fragile and, as such, it would be unwise to predict anything other than a "flat" year.

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