A leading Cumbrian company has released its year end figures – and revealed an improved performance despite the challenges of COVID-19.
H&H Group plc said the results show an overall operating profit of £1,532,000, up from £742,000 in 2020.
Profit before tax stands at of £1,223,000, increased from £330,000 in the previous year.
H&H Group’s asset base has seen an increase from £19.4 million in 2020 to £21m.
With new measures in place to futureproof the business, the board has recommended a dividend of 15p per share, in addition to the interim dividend of 5p per share announced in December.
This makes a total dividend for the year of 20p per share, compared to 2020 where no final dividend was recommended to protect the group for a turbulent economic climate.
Chief executive Richard Rankin said: “During an unprecedented year, the group and all its people have shown incredible adaptability, and as a result, has performed very strongly.
“When coronavirus arrived, everyone just rolled their sleeves up – it brought out the best of our people because we had to get through it.
“I am immensely proud of the whole team at the H&H Group for rising to the business challenges in such difficult times. The talent and enthusiasm of the people have resulted in the group performing incredibly well.
“This demonstrates our commitment to the rural economy and our customers and provides a strong and positive foundation for future growth.”
H&H Group is the parent company for Harrison & Hetherington farmstock auctioneers, H&H Land & Estates, H&H Insurance Brokers and H&H Reeds.
Harrison & Hetherington saw volumes and prices up on prior years.
Mr Rankin said: “The farmstock business has improved its market share and the uplift in values has helped to build confidence in the agri-industry, especially in the beef and sheep sectors.
“The success in online marketing and selling has also continued, as both the team and customers embrace this new way of trading.
“Digital trading is now making significant contributions to this business, and we expect this to continue and evolve going forward.
“As the reputation of Harrison & Hetherington continues to grow across the UK and beyond, we have every reason to be extremely confident in its position for the future.
“Several prestigious pedigree and commercial sales have been held, demonstrating the industry’s confidence in our business, and our reputation as one of the UK’s leading traders of livestock and genetics.
“The team has continued to excel in their field, and to drive this business forwards we have invested significantly in the next generation of leaders.”
H&H Insurance Brokers has experienced a return to profitability, Mr Rankin said, demonstrating a strong bounce back in performance.
He added: “Across the board, performances have exceeded expectations, particularly around new business targets. This has resulted in a return to profitability, and more importantly a secure base with which to continue steady growth.
“The team has continued to grow in number, experience, and confidence, and the company looks set for another solid year.”
Its H&H Land & Estates business experienced the best year in memory, finished the year ahead of budget and the prior year’s results, despite difficult trading conditions.
Mr Rankin said that was due to the Stamp Duty holiday, and an unprecedented interest from out-of-area buyers looking to relocate to Cumbria.
Mr Rankin added: “This division appointed a new head of property and introduced a new business model, which has been very successful, and it is well placed to grow and build on its strong reputation.
“To support this development, and clients, ahead of the changes to the Government schemes and the introduction of the Environmental Land Management Scheme, there are further changes to the working remit for this team and new members and roles are being appointed and expanded, particularly around forestry and carbon off-setting.”
He added, however, that he had concerns that the current interest from off-comers was falsely inflating the market and making it harder for local people to get on the property ladder.
COVID-19 had the biggest impact on print business H&H Reeds as business tailed off.
But, Mr Rankin said, from August of this financial year, activity has picked up back to pre-COVID levels.
