John Swan & Sons reports improved results for the half year, with an encouraging performance from its livestock auction business and a continuing focus on control of central costs.
Despite the ongoing reduction in both the National Beef Herd and the National Sheep Flock, the company reports a half year profit of £107,375 compared with £24,425 last year.
This result has been achieved through a combination of tighter credit control, an increase in income and the control of running costs. The current economic climate necessitates that all of these factors are closely monitored.
The continuing buoyant market for livestock is encouraging for producers whose operational costs are increasing and, whilst we are providing a comprehensive marketing service for all classes of livestock, it is important that the competitive element of marketing by live auction is maintained to ensure a benchmark in price setting.
The board points to positive signs of project work for its fledgling property arm, but, it will be some time before it sees significant recovery in this market.
Cash balance reduced from £152,080 in funds at 30 April 2011 to a net overdrawn position of £280,004 at 31 October 2011, largely due to the increase in debtors at 31 October 2011, a peak trading time for the auction business. The equivalent cash position at 31 October 2010 was £747,505 overdrawn.
There will be no dividend at this time. The board will consider the matter further at the year-end.
At 9:05am: (LON:SWJ) Swan(John) & Sons share price was 0p at 350p
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