Highland machinery rings merger to create £100m turnover giant
A £100 million combined turnover is expected to be generated by the planned merger of a leading Highland agricultural industry co-operative and another north of Scotland firm.
Inverness-based machinery ring company Highland Business Services (HBS) and Laurencekirk-based Ringlink (Scotland) have confirmed they plan to merge their activities.
Machinery rings were created in the UK to help farmers reduce capital costs through sharing machinery on an organised basis. The concept has since been expanded to include the provision of labour to farming and other rural industries, training and the supply of commodities, such as fuel, straw, stockfeed, fertiliser and electricity.
The newly-merged machinery ring will boast a combined membership of more than 4000 and serve farmers and crofters stretching across an area that runs east central Scotland to Sutherland in thwe north, Skye in the west and Argyll in the south.
It will retain the Ringlink Scotland name and two directors of HBS will join the Ringlink board. Overall management will be the responsibility of Ringlink’s managing director, Graham Bruce, with the present HBS team continuing to run operations in HBS’s existing trading area on a day-to-day basis from their present office at Glaikmore, Tore.
Administration will be linked to Ringlink’s main computer at Laurencekirk and Ringlink will retain their existing regional offices at Cupar, Coupar Angus, Oldmeldrum and Elgin.
Members of HBS are to be asked to give formal approval to the merger plans at special general meetings to be held on June 24 and July 11. The proposals will require the approval of at least two-thirds of members present or voting by proxy, at the first meeting and half at the second meeting. Subject to the approval of members of HBS it is proposed the merger will take place on August 1
“Both rings have worked closely together over the last few years and the proposed merger is the next logical step forward in the machinery ring concept in North of Scotland,” said Ringlink chairman, James Porter.
“The combined ring will be able to offer a more comprehensive and efficient service and will allow further development of the core business, along with the labour and training divisions which are an integral part of the business.”
HBS chairperson, Anne Rae Macdonald, said the merger would provide members with enhanced buying power and services in what she describes as the challenging times which lie ahead for farmers and crofters and in light of support payment reforms.
“The plans are a significant step forward in our development and will allow both rings to pool resources whilst still optimising local centres, contacts and knowledge” said Ms Macdonald. “The merger will enable the joint business to build on existing resources, help find new opportunities for our farming and crofting businesses, provide on-going support for staff and reduce costs in areas such as administration, computer software and professional fees.”
Ringlink, originally known as Mearns and Angus Machinery Ring, was the second machinery ring to be formed in the UK in 1988. The name was changed to Ringlink (Scotland) Ltd following a merger with the North East Machinery Ring in 1998 which was followed by the merger with GBMR in 2004.
Both organisations say they believe rings have an important role to play in reducing overall farm costs and in making farming and crofting enterprises more resilient going forward
Graham Bruce added: “Through the development and expansion of the existing labour pools, where the two rings have been placing over 450 workers with member businesses every day, the merged business will provide the opportunity for a significant increase in this capability.
“The bottom line is that the enlarged co-op will safeguard and create jobs in farming and rural communities and help the industry to retain and adapt the skills it will need to maintain competitiveness in the future. This is a merger for growth and reflects the important business generators that ring businesses have become, and their outstanding potential. The directors are to be commended for taking this important step forward.”
