Berwick based Simpsons Malt records £7.1m profit but remains mindful of Ukraine situation

The Berwick-based company, which includes agricultural merchanting division McCreath Simpson & Prentice, recorded a profit before tax of £7.1m (2020: £4.7million) from a turnover of £214.2million (2020: £123.5million).

Simpsons Malt managing director Tim McCreath said: “We’re delighted to report a solid set of financial results in a year that saw us make significant investments in our business operations, sustainability objectives and our people.

“While demand for malt, cereals and crop inputs remains robust and the prospects of the company appear healthy, we are very mindful of the potential impacts of global events on the business – such as Russia’s decision to invade Ukraine – and we continue to exercise caution and prudence in day-to-day and strategic decision making.”

The company’s financial year was headlined by the acquisition of the grain trading business of W N Lindsay, with the company taking on ownership of four grain storage sites across Scotland.

During the first quarter of 2021, the malting division saw sales volumes and margins recover to near pre-pandemic levels, and this was sustained throughout the remainder of the year.

The merchanting division, together with the trading activities of W N Lindsay, had a mixed year. Sales of crop inputs performed very well, but increasing cereal values presented difficulties in securing wheat and this, combined with haulage costs, meant wheat trading margins were eroded.

A major focus has been on the continued safety and wellbeing of employees, entering a partnership with Plumm Health which gives employees access to on-demand, online mental health wellbeing services.

The company also accelerated its annual pay award to support employees with cost of living pressures, with this support continuing into 2022.

Significant investments were made in pursuit of sustainability objectives. HVO fuel was introduced into most of the company’s haulage fleet, reducing net CO2 emissions from each wagon by up to 90%, while more than 400 contracted malting barley growers were assisted in becoming verified to the Farm Sustainability Assessment (FSA) to Gold performance level.

It also became a Certified B Corporation, joining a growing group of companies reinventing business by pursuing purpose as well as profit.