Harbro Group in Inverness ‘well placed’ despite profit drop
AN agricultural firm is confident it will be well positioned to handle any Brexit-related challenges.
Harbro Group, which has a base in Inverness’s Harbour Road, is involved in the manufacture and supply of animal feedstuff and associated agricultural products and services.
It has been working with suppliers, customers and the Agricultural Industries Confederation to ensure it is fully prepared for post-Brexit.
“This includes ensuring our key product supply lines are covered and our suppliers have appropriate stock levels in place,” stated a strategic report accompanying the firm’s latest accounts.
It comes as the company recorded increased turnover and a drop in pre-tax profit for year ending June 30, 2018.
The report stated: “As always, the outlook for agriculture is difficult to predict.
“The uncertainty and impact of Brexit is not fully understood.
“However, the board are confident that the group will be well positioned for whatever business challenges this may bring about.
“As a business we continue to see lots of opportunities.
“The board of directors have defined strategies across all revenue streams with a clear direction of focussing on core activities.”
Turnover increased from £108,924,000 in 2017 to £119,074,000 last year.
For the same period, pre-tax profit dropped from £3,662,000 to £3,601,000.
Higher cost of sales and administrative expenses are factors in the dip.
The report stated: “Despite challenging times in the industry, the year was a strong one for the Harbro Group.
“The business has undergone further market penetration across the UK in a number of species groups.
“A focused approach to our international business has also seen this division grow with new markets opening up outside Europe and further growth in Europe.
“The group continue to invest in improving processes in an effort to allow the business to become leaner, more efficient and allow better control of overhead costs.”
The average number of employees increased from 446 in 2017 to 479 last year, while staff costs increased from £15,063,000 to £16,240,000.
The report stated: “Our employees are central to the success of the group.
“The group continues to invest in training and support to all employees to ensure they have the skills required to perform their duties and to provide an excellent service to our customers.”