Agronomy and distribution business ProCam doubled its pre-tax profits to £14m during 2021.
The net operating margin – profit before tax as a percentage of sales – also rose from 2.2% in 2020 to 3.7% in 2021, according to the company’s annual report for the year ending 31 December 2021.
The business, which operates across the UK and Poland, saw turnover rise from £329m in 2020 to £376m in 2021, with more favourable weather and strong output prices contributing to increased sales and profitability in its UK operation.
The company said: “UK agriculture had endured 18 months of adverse weather conditions since autumn 2019 which inevitably impacted on performance, and 2021 provided farmers with a much-needed opportunity to produce improved yields.
“While spring 2021 got off to a slow start due to dry weather in March and April, much needed rain from May onwards promoted crop development and increased demand for our products.”
ProCam’s Polish arm also saw its 16th successive year of sales growth.
It said the outlook for the 2022 financial year was positive, given that strong commodity prices meant it was in farmers’ interests to enhance yields by investing in crop protection and plant nutrition products.
The importance of maintaining strong farming and agri-supply sectors had been reinforced by the Russian invasion of Ukraine and supply chain pressures relating to Covid-19.
Spring 2022 had seen shortages of plant protection and plant nutrition products, and these were likely to continue for the foreseeable future.
However, it added: “The group, with its well-established supply and distribution networks, is well-placed to provide the support our customers need to help them navigate through these challenging times.”
The business has decided to exit the hospitality and leisure sector, selling a pub it owned in Cambridgeshire so it can focus on its core agronomy and distribution businesses.