H&H Group sees profits rise in year of uncertainty

Carlisle-based H&H Group said its latest annual results highlight its continued improved performance, despite rising costs, changing government regulations, and the challenges of recovering from the pandemic.

In the year to June 30, 2022, H&H Group reported an overall operating profit of £1.781m, which is up from £1.532m in 2021 and the profit before tax stands at £1.509m, which is an increase on the £1.223m in the previous year. H&H said passing this £1.5m profit barrier is an excellent result and a significant milestone for the company.

Turnover jumped from £14.694m the previous year to £17.221m.

The group said it has a strong asset base, which has seen an increase from £21m in 2021, to the current £22.7m this year.

With strategies under way to future proof the business, and despite cash pressures, the board has recommended, with confidence, a dividend of 15p, in addition to the interim dividend of 5p announced in December. This makes a total dividend for the year of 20p, which is on par with 2021.

This achievement has been led by chief executive, Richard Rankin, who, through his leadership, has seen the teams within each business of the group of companies achieve success.

He said: “I am incredibly proud of the entire team involved within the H&H Group for continuing to rise to and overcome the many recent business challenges. These encouraging numbers are a reflection of the industry at the current time, and the dedication and enthusiasm shown by our teams.

“This was a very positive year in respect of building on the last few years’ investment into our people and their development and I expect this to further pay dividends in the future as they grow into their new skill base. However, I say this with an err of caution, as I think we are facing some significant headwinds including disruption in central government, energy costs, and interest rate rises, all which have the potential to erode these successes.”

He added: “Normality has almost resumed throughout our business from those COVID days, and following on from last year our farmstock business, Harrison & Hetherington, has again performed strongly increasing throughput numbers. Combined with the market continuing to enjoy price increases, this has resulted in another set of exceptional results.

“The company’s internal structure and new management team continue to develop and strengthen. They are innovators, grasping new opportunities and breaking new ground.”

He said: “The senior leadership continues to grow and strengthen at H&H Insurance Brokers, and this is clearly reflected in the performance of the business that is set on an upward curve. They have also increased on the strong results from last year.

“The acquisition of Tynedale Insurance Services, in Hexham, will further bolster this business in the future as it strategically connects our long established base in Cumbria to our growing base in the North East. Through a partnership with Sage Wealth Management, we have introduced a financial and wealth management service line. Together with our asset finance service line this enables us to offer a broad suite of financial solutions and protections to our customer base.

“The land and property business, H&H Land & Estates, has continued its strong finish from the previous year with another increase in both top line turnover and the bottom line profit. They have also seen some significant farm and land sales this year along with increasing demand for its specialist professional services. The Land & Estates team continues to grow as we expand and develop our scope and look to explore new markets and enhance our existing ones to keep pace with the ever evolving legislation and potential opportunities.

“As a result of lack of stock, which was a national problem and was not just localised to the regions that we cover, our estate agency business has suffered, although the ettings side of the business continues to thrive.

“Activity for our creative business, H&H Reeds, has now returned to pre-pandemic levels, which has been evidenced by an increase in turnover. Central to this is the noteworthy performances of the signs division, who consistently beat expectations. Our digital team continue to build on their early successes, and they have acquired a number of prestigious contracts.”

Looking to the future, he said: “No one knows what is ahead, so going forward we will continue to evolve and progress across our portfolio of companies. I am confident that the H&H Group will, as it has shown in the past, be able to adapt and overcome any challenges so that we can continue to push forward.”