H&H Group profits rise

The Carlisle-based H&H Group reports an increase of unaudited profit before tax of 5 per cent on the year in its interim report to the end of December 2004.

In spite of tough trading conditions for some of the Group’s subsidiary companies, at £232,000 the unaudited profit before tax is up nearly 5 per cent on a turnover of £4,115,000.

David Trimble

In his report sent to shareholders this week, Group chairman David Trimble says: “Harrison & Hetherington and Borderway Motor Auctions have both continued to trade strongly and are ahead of budget.

“However, at this stage, it is difficult to predict what impact CAP reform will have on our farmstock business over the coming months."

On the longstanding issue with Defra over foot and mouth valuation fees, Mr Trimble says: “I am pleased to announce that, very recently and through negotiation, we have been able to resolve all outstanding issues with regard to the payment of fees for the valuation work which we undertook on behalf of DEFRA during the 2001 FMD outbreak – our resolution with DEFRA is subject to a confidentiality agreement.”

Mr Trimble reports an increased demand for group shares over recent months with an average price of £8 per share.

Based on the half year results and the view of the future, the group’s directors have declared a maintained interim dividend of 4.5p per share, which will be paid on April 29 to shareholders on the register on April 8.

Mr Trimble says of the Group’s subsidiary companies, Borderway Finance continues to trade profitably, although across the industry there has been a marked reduction in the number of motor vehicles changing hands due to higher interest rates and a lower feel-good factor.

Borderway Finance, Borderway Insurance Brokers and H&H Bowe have completed the necessary work for FSA compliance and were all registered well ahead of the deadline.

Borderway Insurance Brokers is behind budget due to the initial costs of visiting all the clients transferred from HBOS and the ongoing costs associated with the new FSA regime.

However, negotiations have been concluded to acquire Richard Utting's Penrith based insurance business; creating a much larger base on which to build future profits.

H&H Bowe is ahead of budget on its estates and professional work, but well behind in other areas due to a dearth of farm sales and much reduced quota trading – both as a direct result of CAP reform.
H&H King continues to operate in a highly competitive market; its residential lettings business is expanding well, but it has lost a number of sales recently because of the severe flooding in Carlisle.

The Group has a short list of potential developers for its Rosehill site. There will be some short term disruption to Borderway Motor Auctions when the operation moves premises to make way for the commercial development on part of its Rosehill site.

<<back