Profits have fallen for Cumbria’s H&H Group by £500,000.
H&H Group’s annual results have just been published and while its core agricultural business, Harrison & Hetherington achieved a record-breaking gross turnover of £250 million, it was a more challenging year for the group’s estate agency and print and signage sectors, it said.
The results show an overall operating profit of £1,328,000 for the year, down from £1,880,000 in 2023, and profit before tax but after increased interest costs and a revaluation adjustment £502,000.
Despite the above results, the board unanimously recommended a final dividend of 5p.
H&H Group chief executive, Richard Rankin, said the latest results reflected the group’s underlying strength and success in serving the agricultural markets in some of the most difficult and turbulent conditions experienced by the UK economy in recent times.
He said: “I am disappointed with the result but not disappointed in the business or our teams; we have a fantastic rural business, and have now streamlined it, making it fit for the future.
“Announcing a dip in profits after two record years was never in the plan, but the continuing high levels of cost inflation and interest rates throughout this year makes the exceptional performance of our principal businesses even more remarkable.
“Harrison & Hetherington, our livestock trading business, has proved yet again that we are leading the way in the development of a world class service to clients across the country, and our H&H Land Agency and H&H Insurance teams are going from strength to strength in their support for farmers, landowners, and rural businesses through the minefields of change the whole agricultural industry is facing.
“Despite the national decline in livestock numbers, Harrison & Hetherington has had an exceptional year, achieving a record-breaking gross turnover in excess of £250 million.
“The farmstock team have risen to the challenge by increasing market share in particular with prime sheep, and we continue to strengthen our position as first choice for buyers and sellers of the highest quality stock.
“H&H Land & Estates has continued to provide clients with vital consultancy support and advice on conservation and the environment in the face of continuing uncertainty surrounding the fundamental changes in Government support and the reduction in pre-Brexit payments.
“A very poor winter and spring, combined with high interest rates, created major challenges in the land and farm sales market early in the year, with far fewer than expected coming to the market, thereby depressing this earnings and profit stream.
“Reacting to very challenging conditions created by uncertainty and high interest rates, we have rationalised our regional network of high street offices, streamlined and expanded our online services.
“Consolidating our estate agency, lettings and land & estates management teams into dedicated hubs that allow every member of every team to provide every client with the very highest level of personalised professional service.
“Firmly established as one of the UK’s leading professional rural insurance providers, H&H Insurance Brokers grows from strength to strength and its investments, wider geographical spread and an increased commercial insurance offering are paying dividends and feeding through into the financial results.
“In continuing to plan for growth, they have actively chosen to invest in their people and to recruit ahead of the plan for the year 24/25, which will take them to the next level in terms of profitability.
“Customer price pressures, rising cost of materials and shrinking margins in a subdued and fiercely competitive market have created a substantial loss for H&H Reeds again this year.
“The major investments made this year in the structure of the group are central to our strategy to make it fit for the future.
“In addition to the action taken on our two underperforming business streams, there are two areas where investment is being made in profitable parts of the group.
“A major upgrade of Borderway market is underway to further improve the facilities and enhance the experience for livestock, staff and customers. The property division consistently provides a stable income to underpin our results, and construction of a new Ford garage at Rosehill will add to this secure income stream.
“We have continued to invest in and develop our people across the group and we are proud of our reputation for developing young staff through apprenticeships, many of whom are rising to responsible positions within our operating companies.
“I would like to thank all the people in our teams right across the business whose commitment and dedication ensures that the H&H Group continues to provide our customers with the very highest level of service and deliver another strong set of financial results. They should rightfully feel proud.”
