Scottish farm machinery dealer HRN Tractors enjoyed a 99% boost in profits last year despite “difficult trading conditions”.
The Insch-headquartered company, which specialises in Kubota machinery, posted pre-tax profits of £687,086 in the year to September 30, 2020. This is up from a pre-tax profit of £344,880 the year before.
The accounts, filed with Companies House, also show an 8.6% reduction in turnover to £31.7 million, from £34.7m previously.
In his report accompanying the accounts, managing director Neil Barclay said: “The company’s trading performance during the year was consistent with the director’s expectations given the difficult trading conditions in the industry.”
He said although turnover had decreased, the company’s margins had remained consistent at 13.5% – this compares to 13.8% the year before.
“The principal risks and uncertainties of the business currently centre around the impact of Brexit on stock availability and pricing,” added Mr Barclay.
“The company’s balance sheet remains strong and plans are in place to reduce stock levels and improve working capital.
“The continued investment in cost management and efficiencies should ensure that the company maintains and continues to improve its performance and customer service levels going forward.”
The accounts make reference to a change in the company’s main franchise in October last year – a move away from John Deere to Kubota.
Mr Barclay said: “Opportunities for growth gives the director confidence that the company is well placed to continue its strong position going forward.”
He said the company, which employed an average of 93 staff during the year, had been relatively unaffected by the Covid-19 crisis and it had continued to trade, with appropriate measures in place, during the pandemic.
HRN also runs depots at Turriff, Kinloss, Muir of Ord, Caithness, and Balbeggie in Perthshire. Its other franchises include Kverneland, Merlo, Bunning and Bailey.