Increased profits

Operating profit for the H&H Group, Carlisle, for the 12 months to the end of June this year has increased by 37 per cent on an improved turnover of just over £8 million.

Borderway Mart

However, since the start of the new financial year, foot and mouth outbreaks have impacted on a major part of the Group’s business – the farmstock operation.

H&H Group chairman Alan Bowe, in his annual statement, says: “The announcement in August meant that a major part of the Group’s business shuddered to an immediate halt.

“Whatever the timescale as far as a return to more normal marketing of livestock is concerned, there is no doubt that these recent FMD outbreaks will leave their mark on the industry and in respect of our farmstock business, there will be an acute impact upon this current year’s financial performance.

“All this after the end of a financial year in which there had been seen a very substantial increase in Group turnover and profit. This performance, in itself, provides the opportunity to recommend an increase in the dividend paid to shareholders, up from 16p in 2006 to 20p this year.”

In his annual report to shareholders, chief executive Trevor Hebdon says last year, on a turnover of £8,801,000 (2006: £7,993,000) operating profit advanced to £2,074,000 (2006: £1,515,000) and profit before tax to £824,000 (2006: £644,000).

Earnings per share have risen to 69.1p (2006: 52.9p), and with a recommended final dividend of 13.5p per share alongside the interim dividend paid of 6.5p per share, there will be a total dividend for the year of 20p per share (2006: 16p per share).

Mr Hebdon says: “As a result of the Group’s robustgrowth in turnover and profit - and after payment of tax and dividend - shareholders’ funds have increased to £10,908,000 (2006: £9,588,000)”.

Due to some extremely strong cattle prices post the lifting of the BSE export ban in May 2006 and the successful implementation of targeted canvassing programmes, the farmstock business Harrison & Hetherington turned in an outstanding trading performance.

In addition, the market share of livestock numbers handled, across eight sales centres has increased in most categories and been maintained in others against a reduction in numbers nationally.

A marked increase in all aspects of professional work and rural property sales throughout the north of England and Scotland produced a very good financial result from the Group’s chartered surveying and land agency division H&H Bowe.

As well as there having been an enlargement of the client base within the principal area of operations a number of new instructions have been received from clients further afield.
H&H Insurance Brokers, despite the market at large continuing to be relatively soft, customer retention rates have remained high when benchmarked against the industry and in addition, lead conversion and new business written have seen considerable advancement.

Both an increase in the number of properties sold and let and a notable rise in profits have been evidenced by the residential estate agency and lettings departments H&H King.

With the exception of the the car finance subsidiary Borderway Finance which had a challenging year although still returning a profit before tax of £313,000, the group’s other operating companies H&H King and Borderway Motor Auctions both had improved profits.

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