Farms feeding sheep in field

H&H Group PLC Interim Results Demonstrates A Strengthening of the Markets

Posted on: 20th March 2020

H&H Group PLC has just released its interim results for 2020, which are showing a positive outlook, despite its turbulent year in 2019. 

The Group’s EBITDA (Earnings before Interest, Tax, Depreciation and Amortisation) amounted to £889,136 for the six months to 31st December 2019, which resulted in a profit before tax of £302,000 against £154,000 for the corresponding period of turnover in 2018. Turnover increased by over 5% from £6.8million to £7.3 million.  Commenting on this more positive turn of events, Richard Rankin, Chief Executive said:

“I am pleased to report that despite Brexit and the threat of Coronavirus, the first half of the year is showing a much-improved turnover and profit position over the same period as last year and we are expecting the second half to continue in a similar vein.  Given the current unprecedented context we find ourselves in currently, this is extremely encouraging news, and largely thanks to an extremely dedicated and resourceful team.”

In particular our Farmstock Business has had a much more positive year with £92 million worth of stock traded in the first six months, representing a 7.8% increase, with the sheep and dairy sector being particularly strong.

Cattle and sheep values in the Autumn remained difficult but prices latterly have improved significantly particularly in the sheep sector. The Dairy sector has seen a rise in dispersals over the period, and we have also seen more Pedigree Beef and Sheep reduction dispersals, all of which have attributed to our half year ending well ahead of budget.

We are encouraged by these results, however, at the same time we are fully aware that there are a number of variables which are currently changing daily and may have a huge impact going forward.

H&H Reeds has enjoyed a busy first 6 months, finishing ahead of budget. This is down to a fullprint order book and the ongoing growth and development of the company’s graphic design, sign and digital divisions, with exciting developments still to come.

The housing market is showing no signs of picking up and remains very challenging for H&H Land & Estates, however the lettings business has remained stable and is now looking to grow. The professional land agency work continues to strengthen, and we are now looking for more resource to continue expanding the business.  Planning at Newtown St Boswells is taking longer than anticipated and it is now expected to be on the local planning meeting agenda later in the year, and we hope to have positive news soon about our Riccarton land.

H&H Insurance Brokers has held its position well in what is a very competitive insurance market, and we have a strong and stable team in place. Our financial performance remains marginally below budget, however, this is something which will be addressed as the second half of the year progresses.

In terms of dividends and shares, the average share price in the period was £25.53 against £28.88 for the same period last year.  The Directors recommend an Interim Dividend of 5 pence per share and this will be paid on 1st May 2020 to those on the share register at 10th April 2020.

Richard concludes:

“Our businesses are in good order, however, as we announce these interim results post Brexit, we are also fully aware that there are still uncertain times ahead. The ongoing implications associated with Coronavirus has also influenced decisions made in the budget, which unfortunately resulted in the agricultural sector not benefiting from the full support we were expecting as the virus and its consequences overtook “normal business”.

“What remains a certainty, however, is that we, as a Group of companies, has supported the rural and farming industries for generations and will continue to do so, helping these businesses to be future-proof.”

What our customers think

Did her very best to help
Very helpful

04 September 2020

Luke Conn - Goodman @ H & H was nothing but helpful right from the word go, he was polite and tried to understand our business . H & H were recommended by a friend and they were a pleasing experience compared to other companies i had tried. I have already recommended H & H and yes i will hopefully use them again.

03 September 2020

Excellent resonance service over many years

03 September 2020

Good service
After an initial slow start in getting a conversation about a ballpark quote ( probably due to covid). Good communication enabled them to win with a competitive quote.

John - 03 September 2020

Great Service
It is always a pleasure to see Edith from H&H who has looked after us for a long time. She always makes sure we have the appropriate cover in place.

John - 03 September 2020

Excellent service and knowledge

Sue - 03 September 2020

Professional and knowledgable
Knowledgeable, helpful and friendly

Paul - 03 September 2020

Good service
Service was good

Gordon - 04 August 2020

five star very good very helpfull

04 August 2020

Very helpful and efficient

Mandy - 04 August 2020

Comprehensive, helpful and good at guiding you though the best cover for you. Offered far more than previous insurer

Victoria - 04 August 2020

Excellent service. Many thanks.

John - 04 August 2020

Friendly and helpful service, replied to queries promptly and gave the best quote. Will definitely consider using next year.

04 August 2020

First class service and attention to detail with good customer care

04 August 2020

Natalie Carr looks after us on the farm and is amazing. Very helpful

Julie - 03 July 2020

My broker, Jacinta, was great. She took a quite complicated set of requirements and gave me a detailed quote. She spent time going through the terms with me and was very patient when I forgot to send some of the information!

Amy - 03 July 2020

[email protected] performance
their system all seemed to work well even during the lockdown with return calls always being made and all queries being sorted promptly.

Sirs - 03 July 2020

Always receive an excellent service from Jacinta.

Janet - 03 July 2020

Everyone was very helpful and cheerful!

03 July 2020

Good service provided by Armitage.

Ann - 03 July 2020