Berwick-upon-Tweed independent maltster Simpsons Malt has published its financial accounts for 2023, posting a profit before tax of £15.2 million from a record turnover of £301.3 million.
The improved profitability for the fifth-generation, family-owned business — which includes agricultural merchanting division McCreath Simpson & Prentice – was attributed to several factors.
The company’s acquisition of W.N. Lindsay Ltd in 2021 enabled McCreath Simpson & Prentice to boost profitability by procuring record levels of grain direct from farm – surpassing previous record totals achieved in 2022.
“Record high malt sales values, driven by cereal and energy costs, were experienced across the whole UK malt market,” said Simpsons Malt.
“This improved company profitability, as did several one-off malt sales contracts, record low malting barley consumption due to the quality of the 2022 harvest, along with careful cost management.
“Improved profitability enabled record investment during 2023 with more than £20million invested into projects aligned with supporting malting customers’ needs.
“Projects to increase base malt and peated malt production at the company’s Tweed Valley Maltings in Berwick-upon-Tweed were completed in Q3 2024, while malt storage projects at both Tweed Valley Maltings and the Tivetshall Maltings in Norfolk will be completed later this year.
“Planning permission for the company’s proposed maltings in Rothes, Moray, was granted in December 2023, with the project design well progressed and further investment set to be made in 2024 in readiness for future development.”
Simpsons Malt Ltd Managing Director Tim McCreath said: “We’re pleased to be able to report a strong set of financial results with turnover exceeding £300 million for the first time, primarily as a result of record high malt and grain values.
“In 2024, we have healthy levels of malt sales and grain contracting for this year’s harvest progressed well. Raw material costs have also decreased, as have market values and volatility in the merchanting division, so while the highs experienced in 2023 will not be repeated this year, prospects for both the malting and merchanting divisions remain positive.”