UK: Simpsons Malt reports ‘strong set of financial results’ for 2023

Simpsons Malt has reported a “strong set of financial results” for 2023, Northumberland Gazette reported on September 27.

The Berwick-based company, which includes agricultural merchanting division McCreath Simpson & Prentice, recorded a profit before tax of £15.2million from a turnover of £301.3million and a number of factors were mentioned as to why these numbers were higher than in 2022 (£9.5million and £273.8million respectively).

Its acquisition of W.N. Lindsay Ltd in 2021 enabled McCreath Simpson & Prentice to boost profitability by procuring record levels of grain direct from farm – surpassing previous record totals achieved in 2022.

Record high malt sales values, driven by cereal and energy costs, were experienced across the whole UK malt market. This improved company profitability, as did several one-off malt sales contracts, record low malting barley consumption due to the quality of the 2022 harvest, along with careful cost management.

Improved profitability has enabled record investment, with more than £20million invested into projects aligned with supporting malting customers’ needs such as increasing base malt and peated malt production at the company’s Tweed Valley Maltings in Berwick.

Simpsons Malt managing director Tim McCreath said: “We’re pleased to be able to report a strong set of financial results with turnover exceeding £300million for the first time, primarily as a result of record high malt and grain values.

“In 2024, we have healthy levels of malt sales and grain contracting for this year’s harvest progressed well.

“Raw material costs have also decreased, as have market values and volatility in the merchanting division – so while the highs experienced in 2023 will not be repeated this year, prospects for both the malting and merchanting divisions remain positive.”

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