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The latest set of accounts to the end of September 2018 show pre-tax profits at farmer-owned Fane Valley co-op were up 29% on the previous year, to stand at £11.58m.
The Moira-headquartered business behind Fane Valley Feeds, Fane Valley Stores, Whites Speedicook, Duncrue Food Processors and Hilton Meat Products, also now holds a 50% share in Linden Foods Ltd and a 50% share in Wexford-based Slaney Foods.
Both the Linden and Slaney businesses are operated in a joint venture with ABP Food Group. The latest accounts for Linden show that it is owned by Forestview Trading Ltd, a company controlled by Fane Valley, and New Meat Division Holdings unlimited, a holding company registered in Jersey, and controlled by ABP. The Slaney business belongs to Slabridge Holdings Ltd, a company registered in the British Virgin Islands, and jointly owned by Fane Valley and ABP.
The most recent Linden Foods joint venture with ABP (the Slaney Foods joint venture has been in place since 2016) was approved in September 2017.
Since then, Linden Foods turnover is no longer recorded within Fane Valley revenues.
However, the profits from the joint venture with ABP are still included in the profit and loss account, and added £2.93m to the bottom line to September 2018 for Fane Valley co-op.
Increase
Looking specifically at Linden Foods Ltd, it operates the abattoir and retail packing plant in Dungannon, an abattoir in the north of England, and holds 95% of shares in Fermanagh based Kettyle Foods and an investment in Linergy.
To the end of September 2018 pre-tax profit increased from £19,475 to £1.51m, with turnover rising from £199.3m to £206.7m.
But without that Linden turnover in the Fane Valley accounts, the co-op turnover for the year to September 2018 is recorded at just £135.8m, compared with £314m in the previous year.
In 2014, the Fane Valley business turned over £429.6m. Since then it has exited dairy processing (selling Armaghdown to Lakeland Dairies), and sold half its Linden business to ABP.
While the details of that sale were not revealed, the latest set of Fane Valley accounts record ‘proceeds from sale of business and investments’ at £13.84m.
It spent £2.51m during the last financial year on the purchase of new businesses, having acquired Stewart Robinson Ltd in Limavady and the Morton’s business from Germinal. At the year-end, Fane Valley held over £12.8m in cash and cash equivalents.
Since then, the co-op has acquired the Monaghan-based Silver Hill Foods duck processing business.
And last week the co-op announced that it had reached agreement with Donegal Investment Group to buy Smyths Daleside Animal Feeds in Donegal and Burke Shipping based at Lisahally port.
The deal is reported to be worth €17.25m.
Feeds
Fane Valley Feeds now accounts for the majority of the overall co-op turnover. The last set of accounts to the end of September 2018 show that the feeds business had a turnover of £76.8m, and a profit before tax of £4.8m.
In his annual report, Fane Valley CEO Trevor Lockhart said that it had been an “exceptional year” for the business, with turnover up 20% on the back of higher volumes, mainly due to the late spring of 2018 and the subsequent summer drought.
The Fane Valley Stores business also delivered a strong performance, with turnover rising from £27m to £34.2m, and pre-tax profit up from £1.1m to £5m, although £4m of that was due to an inter-company loan being waived.
The Whites business also saw turnover increase, from £12.3m to £13.4m, although pre-tax profit was halved at £325,172.
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