One of the UK’s largest maltsters has hailed a successful year despite a drop in turnover and profits.
Accounts for Simpsons Malt reveal a £600,000 drop in pre-tax profits to £9.3million for the year ended December 31, 2016.
Turnover at the Berwick-headquartered firm was also down 10.5% to £143.8million, from £160.7million previously.
The family-owned company, which includes agricultural trading divisions McCreath, Simpson and Prentice and John Guthrie Ltd, runs maltings at Berwick and at Tivetshall St Margaret in Norfolk. During the year group capital expenditure amounted to £6.625million, with the group’s new malt packaging facilities and warehouse at Tivetshall fully commissioned in the year.
“The group’s malting business performed as expected with malt volumes falling short of last year’s record performance. This was due to a marginal decline in distilling malt volumes not being fully offset by growing brewing volumes,” said managing director Tim McCreath.
“Malt sales values declined during the year due to further decreases in malting barley prices. These factors combined to reduce both turnover and profit before tax.”
He said prospects for the malting business were extremely positive, however the merchanting divisions had a challenging year due to tightened profit margins in the farming sector.
“Distilling markets are relatively flat in response to recent weakness in whisky sales. However, whisky sales in 2016 have shown positive signs and whilst spirit production is expected to lag this sales growth, the long-term opportunities for this sector remain positive,” added Mr McCreath.