Scottish processor of beef and lamb and owner of Scotbeef, J W Galloway, has seen turnover and profits increase for the 12 months to 26th February, according to its annual report.
Total turnover was £320 million, up 2.8% on the previous year, driven primarily by “strong UK sales volumes” and strong price inflation on livestock for an extended period
Operating profit was also up at £6.3 million, compared to £5.8 million the year before.
According to the company, subsequent to the year end, negotiations were concluded to refinance the group, with new banking arrangements comprising overdraft and revolving credit facilities, with previous term loans repaid.
These facilities are expected to support the group’s existing business and to secure “sustainable long-term funding, which will allow the group to take advantage of future opportunities that may arise”.
The business has highlighted it “continues to invest heavily in product development”, as it looks to exploit opportunities in the export market, with euro exchange rates “moving favourably since the year end”. It also outlined its commitment to “continually examining new methods of achieving greater environmental effectiveness”.
In its report, the group has also identified “principal risks and uncertainties affecting the business”, including Brexit, reduced livestock availability and prices, the competitive sales market, animal health and foreign currency exposure.
To mitigate these risks, the business is looking to develop “new opportunities for its products” and contingency plans, maintain “strong relationships with its existing suppliers” while developing new ones, work closely with existing customers, and monitor exchange rates closely.
This story was originally published on a previous version of the Meat Management website and so there may be some missing images and formatting issues.
