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Simpsons Malt sees ‘positive’ FY results
Independent grain merchant and maltster Simpsons Malt has announced a “solid” set of results for 2015, credited to “continuing strong demand” from distillers.
Simpsons Malt’s managing director, Tim McCreath, says the company’s prospects “remain positive”
Though the business reported a “marginal” decrease in profit before tax, with figures dipping from £10.4 million to £9.9m for the financial year ending 31 December 2015, Simpsons Malt’s managing director, Tim McCreath, says the company’s prospects “remain positive” going forward.
Though turnover also dropped slightly to £160.7 million from £168.7m, the firm credited a “positive end of year” to continuing strong demand from its distilling customers as well as increasing sales in the global brewing industry.
Simpsons Malt invested heavily in the business throughput the year, spending £6.9 million – primarily on specialty malt production infrastructure and packaging facilities.
Since 2006, the family-owned company has invested more than £70 million at both plants.
McCreath, said: “A strong home market for malt coupled with increased exports continue to drive the business, with sales surpassing the record high volumes achieved in 2014.
“The prospects for our malting business remain positive as we aim to benefit from the steady growth in the specialised and increasingly global craft brewing market. This lends itself to Simpsons Malt’s innovation in speciality malt.
“We will continue our strategy for growth by continuing to invest in our malting facilities to further secure home markets while developing global opportunities, particularly in North America.
“Our people are essential to this success and we will continue to invest in training and development in order to service our customers at the highest level.”
Despite positive results, the firm’s agricultural trading division McCreath, Simpson & Prentice (MSP), admitted experiencing a “challenging year”, due to “tightened profit margins in the agricultural sector”.
McCreath added: “While arable farming returns remain historically low we are pleased to be able to provide stability and certainty to a significant number of farmer growers through our tailored malting barley purchase contracts.”