A major Cumbrian employer has revealed its profits have dropped – but said it was ‘steering strongly through the global economic storm’.
H&H Group, which is the holding company for six firms including H&H Land & Estates and H&H Insurance Brokers, has released its interim results for the six months to December 31.
It showed that its earnings were £1.5 million – which meant it made a profit before tax of £0.9 million. The same period last year saw it make £1.3 million.
Turnover which increased from £8.5 million to £9.4 million.
Michael Scott, H&H Group chair, said: “I cannot stress enough how unprecedented the increase in costs has been, not just in the headline rises in energy prices, but also in fundamental aspects of our financial management such as interest rates.
“The scale and impact of these cost rises is starkly highlighted by the contrast between our growth in turnover and dip in profit margin, and the group has risen to the challenge of adapting to these conditions to safeguard our performance in the second half the year.
“I would like to congratulate every member of the whole team for achieving such a positive performance in conditions so far beyond our experience or control.”
Livestock arm Harrison & Hetherington was unable to replicate its excellence performance last year, Mr Scott said.
He added: “Although volumes have grown, some stock values have fallen and the exceptional dry summer was a major detrimental factor on the autumn sales. In addition to this, costs have inevitably been higher than budgeted predictions.”
The average share price in the period fell to £20.24 against £21.25 for the same period last year.
Mr Scott said: “The board are very mindful of the increased costs facing all aspects of our businesses, over and above that anticipated, for example interest costs which have doubled in recent months.
“With no sign of any change to this situation before our year end but acknowledging the need to recognise our shareholders, the board are pleased to recommend an interim dividend of 5p per share. However, to act responsibly and remain prudent, payment of this will be deferred to protect the group’s cash flow in these uncertain times.
“We continue to be faced by rising interest costs and inflation, and our executive team is conscious of the need to keep operating costs down as much as possible. All our businesses are proactively seeking new ways to reduce costs while at the same time adding even greater value to the outcomes we deliver for our customers and clients.
“We serve a predominantly rural business base profoundly affected not only by the same economic pressures we face, but also by changes in Government policy that threaten their future viability.
“So our services and support have never been more important, and we will adapt our businesses to be fit for a successful future at the same time as we are helping our customers to secure a sustainable future for theirs.”
H&H Group also operates companies encompassing livestock, machinery and vehicle auctioneers, auction rooms, commercial printers and chartered surveyors.
