Following the tough trading year of 2020, in which only 50% of the wheat crop was sown, the grain and crop inputs business Frontier Agriculture has ‘bounced back’ posting a strong trading performance in the year ending June 2021.
Operating profit increased to £35million on turnover of £1.45billion; generating a profit after tax of £26 million – an impressive 10% return on total capital employed.
Total Company net worth has now reached £263million providing the business with long term financial stability and the capital resources to invest for the future.
“We are pleased with our return to more usual performance.” Confirmed Mark Aitchison, Frontier’s Managing Director. “We have carefully navigated our way through the coronavirus pandemic and we continue to invest.”
Frontier is totally focused on its UK operation exemplified by its acquisition of the 100% shareholding in the Southampton Grain Terminal (SGT) in 2021. This was followed by an immediate investment of £5million in a new ship loader and upgrade of infrastructure to ensure Frontier’s south of England farmer customers can access export markets for years to come.
The Company recently announced its investment in a JV Company (with Camgrain & Anglia Maltings Holdings) to build Europe’s biggest Oat Mill near Corby and it has continued to invest in Oxbury Bank the first dedicated agricultural bank in the UK.
“Covid 19 and, more recently, the crisis in Ukraine have highlighted the importance of food security and the value of trading with partners with a strong balance sheet. Frontier’s financial stability helps ensure we can continue to trade and invest safely, reducing risk for our farmer and food industry customers, even during very extreme circumstances.” said Aitchison.
Frontier has consulted with its employees and as a result has made an immediate £20,000 donation to the Ukraine Disaster Emergency Committee (DEC).