Non-livestock income helps Group in 2007 F&M crisis

With the re-emergence of foot and mouth in August 2007, the H&H Group was fortunate to have five other operating companies with income streams continuing undisturbed, chief executive Trevor Hebdon told the Group’s annual meeting in October.

At the meeting shareholders approved the accounts which showed that operating profit for the H&H Group for the 12 months to the end of June this year had increased by 37 per cent on an improved turnover of just over £8 million.

Earnings per share rose to 69.1p (2006: 52.9p), and shareholders approved a final dividend of 13.5p per share alongside the interim dividend paid of 6.5p per share, making a total dividend for the year of 20p per share (2006: 16p per share).

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. 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, Harrison & Hetherington turned in an outstanding trading performance.

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

Mr Hebdon, who is to stand down as chief executive at the end of May 2008 after nine years in the position, said that in 1999 the business had a heavy reliance on one sector – the livestock auction marts accounted for 85 per cent of turnover.
“More particularly at that time the business was haemorrhaging, and haemorrhaging fast. Now confidence has been restored and we’re looking at a business with much greater diversity.
“While all of our businesses have grown, our livestock operation now accounts for 55 per cent of Group turnover. “However, the last three months have been fairly horrific, particularly for the farming community and everyone associated with livestock and I don’t think we can expect to meet the budget that we set in May.”

Tribute was paid to Mr Hebdon at his last annual meeting by former Group chairman of four years, Ian Walker. He described Mr Hebdon as “a man of quite exhausting energy” who had had the courage to make a number of painful decisions during his time with the Group.

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