A leading Cumbrian firm has increased its profits by 16.2 per cent – but its chief executive warns that the current political situation will continue to put pressure on doing business.
Results, published on Thursday for H&H Group, show an overall operating profit of £1,781,000 for the year ending June 30th, up from £1,532,000 the previous year.
Profit before tax stands at £1,509,000, an increase on the £1,223,000 in the previous year. Passing the £1.5m profit barrier is a significant milestone for the company, the firm said.
Chief executive Richard Rankin said it was an outstanding achievement for all the teams as they faced the recovery from COVID-19, rising costs and changing regulations.
He said although normality had almost resumed and the figures were encouraging, he wanted to err on the side of caution.
He added: “I think we are facing some significant headwinds including disruption in central government, energy costs, and interest rate rises, all which have the potential to erode these successes.”
He added that the current political turmoil – and increasing interest rates – would continue to have an impact, but the company was in a strong position.
Mr Rankin said: “It impacts on every level, from our people being anxious to the interest rate changes which change decisions and investments and how I run the business. It will cost us double to do things than it did three months ago.”
However, the firm is pressing ahead to capitalise on its growth over the last 12 months, with plans in the pipeline to upgrade Carlisle’s Borderway Mart.
Mr Rankin said: “We need to make it fit for purpose and something we can proud of. We want to make it into a showcase mart.”
H&H Group operates seven companies encompassing livestock, machinery and vehicle auctioneers, brokers and valuers, estate agents, auction rooms and commercial printers.
Mr Rankin paid tribute to his team for their hard work and dedication to the firm.
Mr Rankin added: “I am incredibly proud of the entire team. These encouraging numbers are a reflection of the industry at the current time, and the dedication and enthusiasm shown by our teams.”
H&H Group has a strong asset base, which has seen an increase from £21m in 2021, to the current £22.7m this year. The board has recommended a dividend of 15p, in addition to the interim dividend of 5p announced in December.
Mr Rankin took over as chief executive four years ago and said his proudest achievement so far was a
future leaders programme to help develop workers and at the same time futureproof the business.
“We’ve had about 40 people take part so far and it is continuing development for the teams. It helps us address succession planning.
“This was a very positive year in respect of building on the last few years’ investment into our people and their development and I expect this to further pay dividends in the future as they grow into their new skill base.”
Currently, the firm is undergoing what Mr Rankin calls ‘Project Reset’ – giving senior management the opportunity to imagine what they would do differently if starting from scratch.
H&H Land & Estates – which has had to deal with an unpredictable property market – is also investigating how to change its model of working.
Livestock arm Harrison & Hetherington has performed strongly. Mr Rankin said: ” The company’s internal structure and new management team continue to develop and strengthen. They are innovators, grasping new opportunities and breaking new ground.
“The senior leadership continues to grow and strengthen at H&H Insurance Brokers, and this is clearly reflected in the performance of the business that is set on an upward curve. They have also increased on the strong results from last year. H&H Reeds has also returned to pre-pandemic levels.”
