Turnover has topped £300m at Northumberland agricultural merchant Simpsons Malt, which saw profits jump 60% on the back of a key acquisition.
The 161-year-old business, a fifth-generation family-owned firm, uses 海角视频 barley to produce malt at Tweed Valley Maltings in Berwick-upon-Tweed, Northumberland, and Tivetshall Maltings in Norfolk, while also operating an agricultural merchant division, McCreath Simpson & Prentice, in Northern England and Scotland.
The company has published accounts for 2023 showing pre-tax profits rose from £9.5m to £15.2m, while turnover increased from £273.8m to £301.3m. Directors said profitability increased because of a number of factors, including the acquisition of WN Lindsay Limited in 2021 which allowed the business to procure record levels of grain direct from farms, surpassing previous record totals chalked up in 2022. Staffing levels also rose from 366 to 387 in the year.
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The company was also delivered a boost by record high malt sales values, which were driven by cereal and energy costs, which were seen across the whole 海角视频 malt market. The company said malt demand remained strong with distilling volumes increasing significantly, more than offsetting reduced brewing volumes.
It added: “The malting division enters 2024 with raw material costs decreasing, malting barley usage normalising and healthy levels of forward malt sales. Although the highs of 2023 will not be repeated in 2024, the prospects for the malting division remains positive.”
The rise in profits triggered record investment during 2023 with more than £20m ploughed into projects across the group. Projects to increase base malt and peated malt production at the company’s Tweed Valley Maltings in Berwick were completed in the third quarter of this year, while malt storage projects at both malting sites are set to be completed later this year.
Planning permission for the company’s proposed maltings in Rothes, Moray, was granted in December 2023, and further investment is set to be made this year in preparation for future development.
Speaking about the financial results for 2023, Simpsons Malt Ltd managing director Tim McCreath said: “We’re pleased to be able to report a strong set of financial results with turnover exceeding £300m 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.
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“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.”
The accounts also pay tribute to the company’s late chairman, Simon Simpson, and its late non-executive director, David McCreath, adding: “With over 132 years of collective experience, Simon and David will be fondly remembered for their vision, passion, and wisdom.
Both were instrumental in growing the group and both passed away knowing that the group would have its finest financial year on record.”