FARMWAY has reported a good financial performance in the last financial year despite the recession and turbulent agricultural markets.

The 45th annual meeting heard its profit before tax rose to £410,300 and its market share increased in all of its key trading areas.

However, turnover fell from £55.5m in 2009 to £44.8m as a result of declining commodity prices and reduced fuel sales following the disposal of its Grandstand garage business.

But Malcolm Rayfield, chairman, said the results justified Farmway's combined agricultural and rural retailing strategy.

He said: "While the economic conditions have caused challenges, the breadth of our expertise, and variety of market segments which we serve, has protected our business and we are confident that we can continue to produce the returns necessary for the future development of the company."

Peter Hull, chief executive, said: "The arable business had a successful year with the Silo again being fully-utilised and last years investment paying off with faster throughput.

"The seed plant also produced record volumes and, coupled with the technical support, is recognised as the leading facility in the North-East."

Last June, Farmway bought the van sales division of Hadrian Farm Services and integrated it into the Farmway sales team.

The vans provide livestock farmers with a delivery service to support its technical sales.

Livestock farmers also benefited from the "Focus on Grassland" publication which provides advice and support on a variety of issues.

Four of its country stores now feature upgraded animal health counters with qualified staff who can help customers directly. The initiative will be rolled out to all of its stores.

Mr Hull said: "We have received many positive comments from our customers about this initiative and Farmway staff continue to be a key asset in delivering advice to our customers across all our product areas."

The Country Stores enjoyed a successful year with both sales and profitability growth. Major improvements and extensions were completed at the Piercebridge and Driffield stores.

The range of Farmway Own Label products also increased and the Farmway "Spend&Save" loyalty card has attracted more than 8,300 applicants since its launch in April 2009.

Mr Rayfield was confident about the future.

He said: "As we enter a new phase of political co-operation, I feel we are well-positioned to meet the challenges ahead.

"The difficult decisions we have made will allow us to continue to grow the business and to ensure Farmway delivers the required products at competitive prices, where our customers need them, backed by relevant technical support."