UK: Simpsons Malt Ltd reports increase in profits for its latest financial year
A Northumberland-headquartered malt company, which can trace its roots back to 1862, has reported an increase in profits in its latest financial year, the Insider Media reported on September 12.
Simpsons Malt Ltd, a fifth-generation, family-owned business, based in Berwick-Upon-Tweed, recorded a profit before tax of £9.5m for the year to 31 December 2022, up from £7.1m in 2021.
Turnover increased to £273.8m compared to £214.2m the previous year.
During the financial year, the company said it built on the benefits of having acquired the grain merchanting business of W.N. Lindsay Ltd in 2021 and the additional storage infrastructure it provided. It said it collected record volumes of malting barley direct from its increased number of growers.
Overall, the business said the merchanting division experienced an "excellent year" with strong demand for all crop inputs and feedstuffs.
On the malting side, it said distilling malt volumes made up a substantial part of the overall traded volume and demand from this sector remained resilient, with year-on-year growth expected to continue into 2023.
Meanwhile, the demand for brewing malt was steady, although the company said it slowed slightly as breweries faced increased operating costs. It said that, combined with higher malting barley values – a result of the conflict in Ukraine – and increased interest costs, meant that profit margins declined in the final quarter of the year.
In 2022, there was an investment of more than £4.3m on tangible fixed assets, including a new grain dryer at its Craigswalls Grain Store, and improvement in power and kilning capacity at its Tweed Valley Maltings headquarters in Berwick-upon-Tweed. Also included was increased storage capacity at its Tivetshall Maltings in Norfolk and a minority investment in Yaregrain PLC to improve its service and barley storage offering to malting barley growers in Norfolk.
The company said it also assisted its workers during the cost-of-living crisis, with a £1,000 payment made to all full-time colleagues in August 2022.
Simpsons Malt Ltd managing director Tim McCreath, noted the company had achieved a "strong set of financial results" despite a "year of global certainty".
McCreath said this can be attributed to "prudent decision making, careful cost management and a focus on value added trading activities".
"With the conflict in Ukraine ongoing and through witnessing the impact this has had on both grain and energy values, as a business we remain mindful of how geopolitical events – and other risks and uncertainties – can impact us on a day-to-day basis," he added.
"However, with demand from the distilling sector continuing to grow and the benefits of our vertically integrated supply chain from crop input supply through to malt delivery, prospects for both the malting and agricultural merchanting divisions of the business remain positive."
Simpsons Malt Ltd comprises a malting division (Simpsons Malt) and an agricultural merchanting division (McCreath Simpson & Prentice).
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