MOLE Valley Farmers, the farmer owned business, has reported solid trading for the year ending September 30, 2014.

Revenue was £422.5m – up £21.8m on the previous year– and the overall gross margin was virtually unchanged at 14.6 per cent, in line with expectations. Profit on ordinary activities before taxation was £5.2m and strengthened the balance sheet which now stands at £45.8m.

Farmer shareholder numbers rose to more than 8,000 and member rewards/savings initiatives totalled more than £1m.

The business invested £4.9m in its facilities, including upgrades to some retail and manufacturing sites. Investment in feed production facilities increased sales by £2.5m and saw volumes rise to nearly 60,000 tonnes. The overall cost of production per tonne fell by nearly five per cent.

Andrew Jackson, chief executive, said: "We have continued to challenge our operational practices and, where relevant, advance the overall capability of our feed business.

“Our aim is to help improve farm efficiencies and productivity and, together with investment in the people we employ, is part of a long term strategy to create a sustainable business that will support farmer members and agriculture into the future.”

A new technical group was formed to join up thinking across the business with regards to nutrition, health, veterinary services and grassland production. Initiatives included a range of moist blends, treated grains, specialist compounds and a revised range of sheep compounds.

“Our feed supplements and powdered minerals business have also had a progressive year with revenues increasing by 15 per cent,” said Mr Jackson. “Our full review and appraisal of our retail store range of mineral formulations also had pleasing results with sales increasing by 22 per cent year on year.”

Fertiliser revenues increased by 18 per cent to £29m.

Overall the business delivered a "sturdy trading result" but the retail side suffered from the mild weather and changing customer habits. The adverse effect on sales in Mole Valley Farmers stores alone was about £5m.

Mr Jackson said: “Across all rural stores, like for like sales grew overall by £5.6m, but performance has been mixed. As a business we have given careful consideration to how we position and customise each of our rural store formats so that each offering can be adapted to best suit our regular customers.”