Eastern Daily Press reports "Fertiliser firm's 'exceptional year'"

by SAM WILLIAMS

Fertiliser manufacturer J & H Bunn has reported a £50m increase in turnover in “exceptional” trading last year - but bosses say a drop in prices will affect this year's performance.

The UK's largest independent fertiliser producer, based in Great Yarmouth, saw sales increase by 40pc to £176m in the year to March 31 2009, buoyed by rises in world fertiliser prices.

The firm, which employs about 150 people, including about 50 staff in Norfolk, reported pre-tax profits of £11.8m over the period, up from £8.3m the previous year, benefiting from a policy of forward buying raw materials, prices of which were forced up during 2008/09.

But the company, which imports, manufactures and distributes more than 650,000 tonnes of fertilisers a year to farmers across England, Wales and Scotland, warned of “weakening demand” early in 2009 and said prospects for 2009/10 were likely to be “very challenging”.

Director John Fuller said following the boom in 2008, fertiliser prices slumped 50pc in the first half of 2009, denting the company's turnover, and despite a slight improvement in prices in recent weeks he warned the business was operating in a tough market.

He said: “2009 truly was a one-off year for us, on the back of commodity prices which raced ahead.  “Subsequently, with the recession, prices have fallen back substantially, and this will be reflected in this year's turnover figures.”  He added: “We are in a very competitive industry with regional players like Bunn competing with national and multinational firms.”

A statement from the company's 2008/09 accounts said the company had continued to invest in its plant and machinery to help reduce costs, but said trade for the year “cannot be expected to be repeated and should be considered as exceptional”.

The company was founded by James Bunn in 1816, supplying horse feed and general agricultural materials to local farmers, and started blending its own fertilisers in the 1960s.

It has eight subsidiary companies including liquid nitrogen fertiliser manufacturer Agritek Sales & Service, based at Seething, Norfolk, B&G Spreaders, based at Bury St Edmunds, Paynes Bros Fertiliser, at Fakenham, and Great Yarmouth-based Spandler Bros.