£3.2m bonus for Queen's seed supplier
An agricultural company which supplies grain and seeds to the Queen has said a boost in UK sales has helped add more than £2m to its pre-tax profit. Shareholders at Gleadell Agriculture, based in Gainsborough, agreed a final dividend payout of £3.23m after a "very satisfactory" year.
In the year to 30 June 2011, Gleadell made a pre-tax profit of £6m, up from its 2010 result of £4m.
This was recorded on a turnover of £433.1m, which was boosted from its £290.6m of sales in the previous year.
Gleadell is named as having a royal appointment to the Queen after supplying the palace with its products for more than five years.
After recording higher sales costs, the amount Gleadell owes creditors within the next year increased significantly; a total of £53m compared with £31m in 2010. This largely comprised of a bigger bank overdraft – it was raised from £7.9m to £23.7m over the year. Trade creditors' owings increased from £20.9m to £25.6m.
Despite its escalated debt levels, Gleadell shareholders agreed to pay a final dividend of £3.2m at the end of its financial year. This was a boost on its 2010 payout of £2.1m.
Over the past year, the company said it purchased "a record amount" of grain and set a new record for fertiliser sales. It benefited from the UK market becoming increasingly reliant on imported products which it was able to supply, said Gleadell.
Of its sales in the year, £319.8m was derived from the UK with £113.3m coming from Europe.
However, during the year the company dealt with "higher than usual" levels of risk due to price volatility. This was caused by "export bans, quotas and weather scares", it said.
Over the 12-month period, Gleadell completed its first full season of its lease and commercial agreement with the Great Yarmouth Port Company. In a statement in its annual accounts, Gleadell said: "The Great Yarmouth storage facility and the mobile ship loader have met all budgeted expectations.
"The company is seeking to further exploit import and export opportunities that will result in improved financial performance".
