One of the country's largest farmer-owned cereal
businesses, Openfield, is paying a £1m dividend to members, it has announced
today.
The Openfield Group has made operating profits of £7.2m on turnover of £557m
for its first full 11-month trading period to June 2009.
The business, which was formed as a result of the merger of Grainfarmers and
Centaur Grain just over a year ago, is returning just over £1m to members.
It also has locations across the eastern counties, including Bressingham,
near Diss, and also markets more than a million tonnes of grain for its
NetWorkGrain UK central storage members.
Richard Beldam, chairman, said that the business had come together well and
performed beyond budget expectations. "The £1m dividend payment is both
substantial and significantly earlier than we had planned when formulating
the merger," he said.
"Furthermore, in view of the good results, we have taken the opportunity to
write off all of the expenses of bringing the two businesses together.
"While market conditions have undoubtedly helped, sound execution due to the
determination of the management team and their staff has allowed us to forge
ahead," he said.
Grain marketing and trading, which is the core of the Openfield business,
had secured good margins, as it handled about 4.6 million tonnes in the
year. And it exported more than 1.2 million tonnes during the period.
In addition, it is one of the country's largest seed, fertiliser and
agrochemical suppliers, which enjoyed an improved financial performance
compared to 2008.
At the year end, membership totalled more than 2,700 and the company trades
with more than 7,000 farmers UK-wide. Shareholders' funds of just under £22m
remain among the strongest in the sector.
Openfield's managing director, Tim Davies, said the ultimate, long-term aim
of the business was to provide members with outstanding customer service and
a wider range of long-term contract options that ensures increased
commitment to Openfield.
"By eliminating waste, delivering on time every time and surpassing
expectations, our aim is to ensure we build on our preferred partner status
with these buyers, achieving excellence across the supply chain for the
benefit of member and user alike."
Openfield has a number of high-profile supply contacts with leading brands
such as Warburtons, Weetabix, Coors and BQP/Waitrose.
Source: Eastern Daily Press
