Simpsons Malt, a distinguished family-owned business in Northumberland, has achieved a significant milestone. Turnover has crossed the £300 million mark, driven by strategic acquisitions and robust market conditions.
The acquisition of WN Lindsay Limited in 2021 has propelled the company’s financial performance, resulting in an impressive rise in pre-tax profits. The company remains a key player in the UK malt market, leveraging its extensive experience and strategic investments.
Record Financial Performance
Simpsons Malt, established 161 years ago, has reported a remarkable rise in profits. The firm’s pre-tax profits for 2023 soared from £9.5 million to £15.2 million. This growth is attributed to several factors, primarily the acquisition of WN Lindsay Limited in 2021.
The acquisition has enabled Simpsons Malt to procure record levels of grain directly from farms, surpassing previous totals recorded in 2022. Staffing levels also saw an increase from 366 to 387 during the year, reflecting the company’s ongoing growth and expansion.
High Demand in the Malt Market
One of the key drivers of Simpsons Malt’s success has been the strong demand for malt. Records show that distilling volumes have risen significantly, compensating for a decrease in brewing volumes.
Malt sales values reached record highs, driven by increased cereal and energy costs across the UK malt market. These market conditions have greatly benefited the company’s financial results for 2023.
Strategic Investments and Developments
2023 has been a year of substantial investment for Simpsons Malt, with over £20 million injected into various projects. This includes initiatives to boost base and peated malt production at the Tweed Valley Maltings.
Additional investment has been directed towards malt storage projects, with completion expected later this year. The company has also secured planning permission for a new maltings site in Rothes, Moray, indicating further growth on the horizon.
Simpsons Malt’s investment strategy underscores its commitment to maintaining a competitive edge in the malt industry, ensuring future readiness and capacity expansion.
Positive Outlook for 2024
Looking ahead, the company remains optimistic about its prospects in 2024. Raw material costs are expected to decrease, with malting barley usage returning to normal levels and forward malt sales remaining healthy.
While the financial highs of 2023 may not be repeated, the company’s outlook for both the malting and merchanting divisions remains positive. This optimism is underpinned by strong market conditions and strategic planning.
Tribute to Leadership
The company’s accounts also paid tribute to its late chairman, Simon Simpson, and non-executive director, David McCreath. Both leaders, with over 132 years of combined experience, played a pivotal role in the company’s growth.
Their vision and dedication have left a lasting legacy, and they are fondly remembered for their contributions to Simpson Malt’s success. Their passing came in a year that marked the company’s finest financial performance on record.
Comments from the Managing Director
Managing Director Tim McCreath expressed satisfaction with the company’s financial results, stating, “We are pleased to report a strong set of financial results with turnover exceeding £300 million for the first time.”
He also noted that 2024 has seen promising levels of malt sales and grain contracting. This positive outlook is tempered by a realistic understanding of market conditions, which are expected to be less volatile.
Continued Growth and Expansion
Simpsons Malt’s strategic acquisition of WN Lindsay Limited and substantial investments have positioned the company for continued growth.
With ongoing projects and plans for further development, the company is well placed to maintain its leadership in the malt industry.
Simpsons Malt’s achievement of surpassing £300 million in turnover highlights its strategic acumen and market strength. The company’s focus on strategic acquisitions, such as WN Lindsay Limited, and significant investments have bolstered its financial performance.
With a positive outlook for 2024 and beyond, Simpsons Malt remains committed to growth and excellence in the malt industry. The legacy of its leadership continues to inspire and drive the company’s success.
