Profits up for a third year (From Worcester News)

Profits up for a third year

1:37pm Tuesday 9th March 2010 in

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FOR the third consecutive year, Countrywide, the Worcestershire-based rural supplier, has announced improved operating profits for the six months to November 2009, despite the continuing impact of both economic recession and volatility in raw material prices.

In the company’s half year results, chairman Nigel Hall reports the business has recorded an operating profit of £0.6m, against £0.2m for the same period last year.

Countrywide, which grew out of Midland Shires Farmers, has three key business areas, retail, agriculture and energy.

Mr Hall said: “Retail remains the most profitable business within the group. It achieved a like for like sales increase of 3.2 per cent in the first six months of the year. All core product categories performed well. It has widened its customer base, and areas such as our new equestrian clothing range are proving successful.”

The fall in commodity prices compared with last year resulted in reduced turnover in agriculture. “This, however, hides encouraging trends particularly in the livestock feeds business which delivered a near 10 per cent growth in volumes compared with 2008,” Mr Hall said. Mild autumn weather and lower energy prices have resulted in reduced sales for energy, with volumes of both gas and fuel falling by seven per cent and eight per cent respectively.

“While this was disappointing, the prolonged period of cold weather that followed has enabled the business to partially recover this shortfall,” said the chairman. “Although market conditions remain challenging, Countrywide’s successful growth can be attributed to the implementation of a clear, long-term strategy which firmly places the needs of the rural customer at the forefront of everything we do.”