Banff-based porridge-maker Hamlyns of Scotland has returned to profitability, but the company says volatile commodity markets remain a “major concern” and continue to weigh on earnings.
Newly filed accounts show turnover rose slightly to £27.8 million for the year to July 31 2024, up from £27.6 million the previous year.
The company, which employs 51 people, reported a pre-tax profit of £36,000, reversing a loss of £43,000 in the prior financial year.
Hamlyns also received government grants valued at nearly £500,000 during the period.
Volatility for Hamlyns of Scotland
Director John Lea said ongoing volatility in global commodity markets—particularly for grain and energy—remains a key challenge for the business.
He said the company’s strategic focus over the past year had been on managing those risks, alongside mitigating the effects of inflation across its supply chain.
Mr Lea described Hamlyns’ approach to risk management as a “key strength,” highlighting longstanding initiatives such as the company’s Oat Growing Scheme.
“Many of the policies that have been put in place over the years, such as the Oat Growing Scheme, have continued to prove their worth,” he said in his strategic report.
However, he noted that poor harvest conditions had impacted oat farmers, contributing to a decline in the firm’s gross margin for the year.
Mr Lea said the board will continue to monitor global events closely, warning the long-term outlook remains “uncertain.”
Despite the challenges, he said the company remains confident in its future, citing “ongoing demand, continuity of supply, productive capacity, and liquidity” as key reasons for an optimistic outlook through 2026.
‘Particularly bad’ harvest for oats
Hamlyns of Scotland was acquired by Cheshire-based Agri Food Holdings Ltd in April 2024.
The change forms part of a wider group reorganisation, which saw Hamlyns transferred from its previous parent company, Morning Foods Ltd, which had held a controlling interest.
The ownership change comes ahead of a major milestone for Hamlyns, which will mark its 60th anniversary in 2025.
In newly published accounts for Morning Foods—covering the year to July 31 2024—Mr Lea reported a drop in profits to £2.9 million, down from £6.6 million in 2023.
Meanwhile, turnover increased 10% to £224 million, up from £203 million the previous year.
“Oats had a particularly bad UK harvest, with premiums over other grains extending to record highs,” Mr Lea said.
“This increase in input commodity prices led to an increased turnover for the year.
“The loss of subsidiaries and discontinued operations during the year reflect a group reorganisation. All entities remain under group control.”
Trusted Scottish brand
Established in 1965, Hamlyns of Scotland has a long-standing reputation in Scottish oat milling and continues to operate from its mill in Boyndie, outside Banff.
The company produces traditional oatmeal along with a wide range of oat-based products, sourcing raw ingredients directly from farmers across Scotland.
Hamlyns’ products are widely stocked in major UK supermarkets, including Tesco, Asda, Sainsbury’s, the Co-operative, Waitrose, and Morrisons.
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