anm73608 annual report annual report - anm group ltd news/annual... · 2017-05-20 · anm annual...

Annual Reportand Accounts

ANMG R O U PE S T A B L I S H E D 1 8 7 2www.anmgroup.co.uk

YEAR END 2016

Colin Slessor, Sheep Sales Manager with Scott Chapman, Trainee Auctioneer

ANM ANNUAL REPORT 2016 3

ANMG R O U PE S T A B L I S H E D 1 8 7 2

ANM Group is therecognised leader inquality, service andprofessionalism in itschosen market places

4 CHAIRMAN’S REPORT

5 DIRECTORS’ REPORT

6 BUSINESS REVIEW

9 CONSOLIDATED PROFIT & LOSS ACCOUNT

10 CONSOLIDATED STATEMENTOF FINANCIAL POSITION

11 SOCIETY STATEMENTOF FINANCIAL POSITION

12 CONSOLIDATED STATEMENTOF CHANGES IN EQUITY

13 SOCIETY STATEMENTOF CHANGES IN EQUITY

14 CONSOLIDATED STATEMENT OF CASHFLOWS

15 NOTES ON ACCOUNTS

30 DIRECTORS’ STATEMENT OFRESPONSIBILITIES AND AUDITOR’S REPORT

LIVESTOCK MARKETINGAberdeen & Northern MartsDirect Marketing Services

ESTATES AGENCY SERVICES AND VALUATIONSAberdeen & Northern (Estates) Limited

SPECIALIST VALUATION &AUCTION SERVICESThainstone Specialist Auctions

CATERING SERVICES &EVENT MANAGEMENTThainstone Events

CONTENTS

ANM GROUP COMPANIES

Last year, I mentioned that theagricultural industry and ourmembers face difficulties in thecurrent climate, including pricevolatility and the impact of thebroader economy, to compoundthat we now have the implicationsof Brexit. Although we still havemany challenges to face as anindustry, I am pleased that as agroup we have recorded a tradingsurplus, and our balance sheetremains strong.

The team spirit we have at ANMacross the whole board, our staffand members, ensures that as a

farming co-operative we go forward on a very positivebasis. I am particularly pleased with a number of thingsaccomplished in the past year.

The support received from our members within thebalance sheet is very encouraging, with a significantincrease in our member shareholding. The continuation ofsupport in the form of loans from our members hasbeen well received by your board. It is also encouragingto report that we have a waiting list of members willingto put funds forward to allow the group to enhance thewhole member experience.

Moving on to the results, the board has taken variousdecisions, along with the executive team, to reduce costsand seek efficiencies. Some of these savings wereidentified in 2015 and have now manifested themselvesduring 2016 to improve our overall results for the year. Inaddition, I am delighted to see our auction businessperforming well by holding onto livestock numbers, withthe enhanced numbers at our collective sales of plant,machinery and equipment and car sales, all leading to agood return for the group. It is fair to say, our staff do agreat job in all areas of the business.

The other focus area we have as a group is ensuring thatour property portfolio remains an important asset for us.Although there are certain obstacles we face, the boardis very focused as to how we proceed to maximisereturns going forward. Despite challenges, we are positiveabout the potential returns we will achieve from ourassets in the long term.

The rejection of the planning application for theextension to Thainstone Business Park has a direct impacton the development of the new abattoir for ScotbeefInverurie Limited. We continue to work hard with RobbieGalloway and Scotbeef on this project and we feel andunderstand the frustration from all our members andcustomers with the lack of progress. However, be assuredwe are doing all we can to move this project forwardtogether.

The board is very clear about its responsibilities, with the

pension fund being one of our main priorities goingforward. Unfortunately, it remains – and will remain formany years to come – a significant challenge for thegroup. We can deal with the ongoing day to daycommitments, but what we can’t deal with, are theexternal factors outside our control which in particularaffect the pension fund, for example, the British economyand the stock exchange that play a huge part in this alongwith actuarial views on life expectancy etc.

Maverston development, as ever, causes the groupdifficulties and we continue to maximise the remainingreturns from the development, but in a planned andsensible manner – which is exactly what I think youwould expect from your board.

I am pleased that Grant Rogerson has settled into hisrole as Chief Executive for the group – makingconsiderable progress already – and with the newadditions to our board. David Mackenzie, Stuart Stephenand Jane Mitchell bring a strong set of skills and a wealthof industry experience; this will serve the business wellinto the future. It is important to the group that theboard remains diverse and offers a variety of skillsets, inaddition to a strong agricultural background. At this point,I would like to place on record my particular thanks toJim Cruickshank for his many years of service andcontribution to the board, along with Peter Chapmanwho has now moved on to the Scottish Parliament.

The board firmly believes in the values of a co-operative,and it is extremely important for us, that as we moveforward, we deliver them through our service and bysupporting the industry and members we represent. TheFarm Profit Programme: Making Livestock Pay, inpartnership with the Irish Farmers Journal, is animportant part of this. This collaboration, along with theScottish Government, is only one small step amongothers we are taking to ensure we play our part inmaking the agricultural industry fit for the future. We havealso engaged with our Caithness members by setting upthe Caithness Advisory Group to enhance their memberexperience which is now beginning to bear fruit.

As most of you know, I will step down as Chairmanfollowing the AGM and subsequently retire from theboard fully in August of this year. I would like to thank theboard of directors and my Vice-Chairman Pete Watsonfor their hard work and support over the year. I haveenjoyed my time on the board, but it hasn’t been withoutdifficulty, particularly in the period when I looked after thegroup as Chief Executive. However, the one thing thatmeant the most to me was the support of all the boards,staff and our members, in what was a very difficult periodfor the group. I am pleased to leave the group in thegood hands of Pete Watson, a great board, GrantRogerson as Chief Executive, the executive team and thetremendous staff we have here at ANM Group. We havegood people to lead us forward.

The team spirit we have at ANM across the whole board,our staff and members, ensures that as a farming co-operative we go forward on a very positive basis

PAT J.MACHRAYOBE CACHAIRMAN

4 CHAIRMAN’S REPORT

DIRECTORS’ REPORT 5

ANM Group is one of the UK’s largest farmer-owned agri-businesses, playing amajor role in Scotland’s agricultural economyThe directors submit their report and accounts

for the year ended 31 December 2016.

The principal activity of the society is the

operation of livestock auction marts throughout

the North and North East of Scotland. The

society’s wholly owned subsidiaries during 2016

were:

(i) Aberdeen & Northern (Estates) Limited,

which trades as an estate agency.

(ii) Thainstone Events Limited (formerlynamed Highland Cuisine Limited), which is a

catering company.

(iii) Thainstone Leasing Company Limited,

which is a vehicle sales and leasing company.

(iv) Scotch Premier Meat Limited, YPM 2012Limited and Taste of Grampian Limited,

which are non-trading companies.

RESULTS AND DISTRIBUTION TO MEMBERSThe results for the year are detailed in theattached accounts.

The directors propose that a trading bonus ispaid and that a dividend of 2.25% is paid onshare capital.

The trading profit for the year amounts to£470,000.

The directors of the society as at 31 December2016 were: J I Farquharson, D A S Green, J F Gregor, T C Johnston, M T Macaulay, P J Machray, D G Mackenzie, G R W Rogerson, S Stephen and P Watson.

In terms of the society’s Rules, P Watson retiresas a director at the Annual General Meeting andis eligible for re-election as are S Stephen and DG Mackenzie who were co-opted as directorson 4 October 2016 and J A Mitchell who wasco-opted as a director on 8 January 2017 and allof whom hold office until the Annual GeneralMeeting. P Watson, S Stephen, D G Mackenzieand J A Mitchell, being the only candidatesnominated for election to the board, are interms of the Rules, duly re-elected.

AUDITORSThe auditors, Williamson & Dunn, retire at thistime and a resolution proposing theirreappointment will be submitted to the AnnualGeneral Meeting.

By order of the DirectorsLC Secretaries LimitedSecretaryANM Group LtdThainstone CentreInverurie AB51 5XZ

BANKERSClydesdale Bank P.L.C.

REGISTERED OFFICEThainstone CentreInverurie AB51 5XZIncorporated under the Industrial Provident Societies ActsNo 1231 R(S)

AUDITORSWilliamson & Dunn, AberdeenChartered Accountants and Statutory Auditors

PAT MACHRAYOBE CA

CHAIRMAN

PETER WATSONVICE-CHAIRMAN

JOHN FARQUHARSONDIRECTOR

DAVID GREENDIRECTOR

JOHN GREGOREXECUTIVE DIRECTOR

MIKE MACAULAYDIRECTOR

DAVID MACKENZIEDIRECTOR

JANE MITCHELLDIRECTOR

GRANT ROGERSONCHIEF EXECUTIVE

STUART STEPHENDIRECTOR

TOM JOHNSTONDIRECTOR

ALISON GREENGROUP ACCOUNTANT

AVRIL MCLEODGROUP EXECUTIVESUPPORT MANAGER

CURRENT DIRECTORS OFFICIALS

SECRETARY LC Secretaries Limited

GROUP COMMUNICATIONSMANAGERM. Wibrew

6 BUSINESS REVIEW

Our success as a diverse co-operative, and industry, depends onhow we respond: in hard times, as well as in good – and I ampleased to report we have made good progress throughout 2016

This is my first report as Chief Executive, andit is an honour to lead such a diverse andimportant business in the North East ofScotland.

I am pleased to report that we have madegood progress in many areas of the businessdespite the uncertain times we currentlyface.

It’s important to reflect on the economicbackdrop we have been operating in formuch of 2016, coupled with Brexit, LandReform and the current state of the NorthEast economy, these are unprecedentedtimes – all contributing to a considerabledegree of unease to the agricultural sector.Our success as a diverse farmer-owned co-operative, and industry, depends on how we

respond: in hard times, as well as in good.

ANM works thanks to the support of our members and customers,as well as the strength of our staff. Our teams play a vital role in thesuccess of the group and I want to acknowledge this by payingtribute to their hard work, dedication and commitment.

The pressure on the farming sector remains. Pressure on prices,costs and confused CAP payments are all being felt across thesector. That said, with the hard work of our livestock team andsupport of our customers, we have seen a significant increase in thethroughput of sheep and performed exceptionally well to maintaincattle numbers.

Despite difficult trading conditions, the Thainstone Events team hashad a good year, and continues to play an important role in servingour members and customers on sale days. John Gregor will updateyou further on the good progress made in both of these importantdivisions.

Thanks to a considerable effort from all involved, the ThainstoneSpecialist Auctions team has had a very good year.

We achieved significant success with our collective plant, machineryand equipment sales and as a result, we are now recognised as thepremier independent machinery sale in Scotland. In addition, theteam continues to work with insolvency practitioners, banks, financehouses, business and private individuals appraising, valuing andremarketing all types of assets. This work has driven more volume toour Saturday sales and saw the team conduct a number of on-sitespecialist sales throughout the year.

The car sales have also had a very positive year with an excellentincrease in throughput, and the introduction of new sales andextended use of online bidding. Overall, I am very pleased with theteam’s effort and the fantastic results achieved.

Our team at Aberdeen & Northern Estates has been acutely awareof the difficulties and uncertainties faced by many in the agriculturalsector. The rural property market has endured significant challenges,with the impact of these difficulties felt more apparent in 2016, asthe prevalent mood of caution continues. However, despite this, andthe recruitment challenges, the team has put in a tremendous effortto post a very good result.

The professionalism and commitment of James Presly and JamesCraig, with the rest of the team, ensures we continue to provide thesame quality service our members and customers expect.

In 2016, we received a high volume of valuation instructions fromcustomers and clients for a broad range of purposes. Demand wasalso evident for our agency services and saw realistic prices achieved– and even exceeded – across a broad range of property.

The Maverston development remains a challenge, and we are clearon ensuring we maximise returns for the group. Since 2014however, the golf course has attracted more than 370 members andan additional 192 winter memberships. This is a fantasticachievement and has helped raise the profile of the residentialdevelopment. Nine out of the first 12 plots available have been sold,and it will come as no surprise that achieving best value in theremaining development remains a priority for the board and theexecutive team.

IT plays a huge part in our business, and our combined efforts tomake the best use of new technology and improve the way wework remains the main focus. We have introduced webcams,allowing customers and members to watch sales live and stream livevideos on Facebook reaching over 18,000 people during one event.

Fundamentally, this and other work we are doing with our websitesand shareholders updates is about improving the way wecommunicate with members and customers and developing ouronline presence. Please visit our website and let us know what youthink.

Our property portfolio is a significant contributor to the group andwe continue to spend considerable time and effort looking into allthe areas of it. Our aim remains to maximise its value, which is whythe rejection by the Garioch Area Committee on our planningapplication for the extension of the Thainstone Business Park, isparticularly disappointing. Especially, since the land was zoned fordevelopment and our application was supported by the Council’splanning department and officers. This is obviously not only a setbackfor us, but for the whole of Inverurie and the North East agriculturalindustry. We have appealed the decision and remain focused as wecontinually build the return on our assets.

Moving to Dornoch, following the demolition of the old abattoirbuildings in 2014, we have sold a part of our site to City Heart forthe development of student accommodation and are still workingwith another interested party on the remainder. In Elgin, we haveundertaken significant work on a planning permission in principleapplication for our site and are in discussions with Moray Council tomove this project forward. We are very proud of the ThainstoneCentre – one of the best auction centres and agricultural hubs in thecountry – and continue to invest and improve the facility.

Following the appeal of increased business rates for the Thainstonesite back in 2010, I am delighted to report that we have finallyreceived a rebate from the Government. Although the appealprocess was hard and required a lot of work, it is particularlygratifying that our persistence and effort paid off. Having said that,we are facing the revaluation of our rates again, and it is importantto understand, that although we are a co-operative business, we arenot recognised as one. In fact, our rates are calculated on a‘hypothetical achievable turnover’ basis, not on the floor area or thesize of the building. Rates costs remain a significant challenge for thebusiness and we are consulting with our advisors to ensure we dowhatever we can to minimise the increase.

Finally, I would like to thank the board and the executive team fortheir contribution and support over the year. We benefit from havingthe considerable skills and expertise of such a diverse, well-knownand well-respected group of people and I thank them for theircommitment to the group. As you will be aware, Pat Machray, ourChairman, will step down from his role following the AGM. It hasbeen a pleasure working with Pat during his time at ANM, both asour Chief Executive and Chairman. Pat leaves ANM in a far strongerposition than when he joined and his drive, determination, foresightand support have benefited the group significantly and we thank himfor that. I also look forward to working with Pete Watson and theteam, focusing clearly on our priorities and goals for the year ahead.

Grant Rogerson

CHIEFEXECUTIVE

I am pleased to report a positiveresult for the core livestock division.Despite some challenges in 2016, it isvery pleasing to see more membersand customers using their co-operative and bringing livestock froma wider geographical area, as bothsellers and buyers recognise thestrength of the group with ourrenowned sales and excellent facilitiesat Thainstone and Caithness centres. Iam proud to be part of ANM and anagricultural industry that continuallydemonstrates their commitment andresilience. Taking pride in our role as aco-operative, our aim is to deliver the

best possible service to our members.

I am happy to report positive throughput figures for 2016.Livestock sales were steady with a 1.5% increase overall;the number of cattle traded at 83,500 which was similarto the previous year and a total of 311,000 sheep sold (anincrease of 17,500). However, the lower market averagevalues of cattle traded of £46 (4.5% decrease average perhead) impacted on our commission earnings and resultedin total value of sales being down £2.2 million for the year.

Our key role as a co-operative is to provide support tofarmers and the agricultural industry. In 2016, wesupported 252 livestock farmers through our stock onagreement scheme. As part of our livestock financeschemes, we also provide support to encourage newfarmers to enter the sector through our new entrant’sscheme. Now in its fourth year, the scheme has providedfunding and assistance to an additional seven farmersacross the North and North East in 2016. Furthermore,through our ANM Charitable Trust, the group has alsoprovided donations of £1,500 to RSABI and £2,000 to agroup of 20 young farmers from across Scotland whichafforded the opportunity for them to learn more aboutfarming operations in New Zealand and support thefuture of our industry.

Our Farm Profit Programme: Making Livestock Pay is anexcellent example demonstrating our commitment as aco-operative. The programme – launched in May 2016with support from Scottish Government and delivered inpartnership with the Farmers Journal – aims to focus onsix diverse livestock farms in our trading area with the aimto improve their technical performance and profitability.We are delighted with the progress made so far by thetwo advisors based at Thainstone, Declan Marren andRobert Gilchrist, in addition to the establishment of theeight regional focus groups. These focus groups will be aforum to share the programme information, challengethinking and drive efficiencies as the project evolves.

In 2016, we had a successful series of shows and salesincluding the RNAS Spring Show event, our youngfarmers overwintering competitions, the Spectacular andthe Aberdeen Christmas Classic.

These successful events would not be possible withoutthe ongoing support of our customers, members,partners and sponsors, and I am pleased to announce thatNorthlink Ferries will again sponsor the Christmas Classicevent in 2017.

The livestock auction business saw significant staff changeswith the retirement of some long-serving colleagues andnew members joining the team. We continue to providecareer opportunities and are delighted that Rory Liveseywas awarded top Scottish student of the year at HarperAdams University by the Institute of Auctioneers andAppraisers in Scotland following completion of his studies.

Caithness Livestock Centre continues to play an integralpart in the group’s business. Following the announcementof John Bremner’s phased retirement after 46 years ofservice, Stuart Slesser has been appointed to the keyposition of Centre Manager. Alongside the CaithnessAdvisory Group, Stuart and the team will be workingcloser with our members and customers in the area.

Continuing to look forward, we are pleased that theindustry has an agreement on the way forward for datatransfer and electronic identification (EID) for cattle. Weintend to be fully involved with the implementation ofthese livestock management proposals to deliverefficiencies to our members and customers and take theindustry forward as a whole.

Turning to Thainstone Events, the team has had a goodyear, with an excellent Christmas period attracting largecrowds to the centre. It is important to recognise that ourstaff play a vital role by serving refreshments on busy saledays and catering for the masses attending other events,which is an essential part of attracting visitors to thecentre and making sure it is a hub for the local community.

Our farm to plate strategy, recognising the fantasticproduce that the North and North East of Scotland hasto offer, has been vital in our success that the PorterhouseSteakhouse & Coffee Bar has seen in 2016. With a 38%increase in sales, the team has done an excellent jobresulting in Visit Scotland awarding Porterhouse the TasteOur Best award for serving locally-sourced produce.

Thainstone Centre is one of Aberdeen City and Shire’slargest event venues offering a variety of facilities to hostall types of meetings and functions. Taste of Grampian – inits 17th year – is a hugely successful food and drink festivalcelebrating all the best that the area has to offer. Last year,we welcomed more than 14,000 visitors to Thainstonewhich had a positive impact of £2 million pounds on thelocal economy. Looking ahead, we are working withOpportunity North East to expand and grow the festival.

I would like to recognise the contribution andcommitment from the team during the course of the year.Moving forward, whilst challenges remain in the industry,we remain positive. As a farmers co-operative, our priorityis to ensure we continue to focus on delivering aprofessional, quality service, with honesty and integrity toall our members and customers.

Our priority is to ensure we continue to focus ondelivering a professional, quality service, with honestyand integrity to all our members and customers

EXECUTIVEDIRECTOR

John Gregor

BUSINESS REVIEW 7

The executive team

Thainstone's twice weekly vehicle sales

The award-winning Porterhouse Steakhouse & Coffee Bar

Mains of Skelmanae brought to marketby Aberdeen & Northern Estates

Weekly sheep sales

The senior management team

Long-serving staff honoured at the annual directors' lunchInvesting in the future: Scott Chapman,Andrew Lyon, Rory Livesey


Consolidated profit and loss account foryear ended 31 December 2016

NOTES 2016 2015£’000 £’000

THROUGHPUT 3 124,780 123,503

TURNOVER 3 8,624 8,365

OPERATING PROFIT 317 115

Interest receivable and similar charges 450 558Interest payable and similar charges (297) (319)

TRADING PROFIT 4 470 354

Investment property revaluations (95) (72)Movement in provisions (4) 50Rates rebate for previous years 244 -Gain/(loss) on fixed assets 2 18Defined benefit pension scheme 5 (262) (285)

Interest on share capital -at 2.25% (2015 – 2.5%) 7 (119) (150)

Trading bonus (47) (39)

PROFIT/(LOSS) ON ORDINARY ACTIVITIES 189 (124)

Taxation on profit/(loss) for year 8 14 (3)

Deferred tax movement on defined benefitpension scheme deficit 37 (195)

PROFIT/(LOSS) FOR THE FINANCIAL YEAR 240 (322)

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

PROFIT/(LOSS) FOR THE FINANCIAL YEAR 240 (322)

OTHER COMPREHENSIVE INCOME

Remeasurements of net defined benefit obligation (1,686) 382

Deferred tax relating to revaluation reserve 114 13

OTHER COMPREHENSIVE INCOME FOR THE YEAR (1,572) 395

TOTAL COMPREHENSIVE INCOME FOR THE YEAR (1,332) 73

NOTES 2016 2015£’000 £’000

FIXED ASSETSTangible assets 9 21,777 21,674Investment properties 10 5,370 5,460Investments 11 779 832

27,926 27,966

CURRENT ASSETSStocks and work in progress 84 85Livestock 7,272 7,871Debtors 12 5,061 5,069Cash in hand 53 50

12,470 13,075

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEARBank overdraft 2,053 2,920Creditors 13 2,263 2,297Members loans 7,696 7,024

(12,012) (12,241)

NET CURRENT ASSETS 458 834

TOTAL ASSETS LESS CURRENT LIABILITIES 28,384 28,800

CREDITORS: AMOUNTS FALLING DUE AFTER ONE YEARMembers loans (1,122) (1,855)

27,262 26,945PROVISIONSDeferred tax 14 (350) (469)

NET ASSETS EXCLUDING PENSION SCHEME DEFICIT 26,912 26,476

Defined benefit pension scheme deficit 15 (6,987) (5,575)

NET ASSETS INCLUDING PENSION SCHEME DEFICIT 19,925 20,901

CAPITAL AND RESERVESCalled up share capital 16 5,483 5,127Capital reserves 17 10,604 10,505Profit and loss account 17 10,825 10,844

26,912 26,476


18 19,925 20,901

Approved by the directors on 14 March 2017 Signed on behalf of the Board of Directors

P J MACHRAY, OBE CA, Chairman P WATSON, Vice-Chairman LC Secretaries Limited, Secretary

10 ANM ANNUAL REPORT 2016

Consolidated statement of financial positionas at 31 December 2016


Society statement of financial position as at 31 December 2016

NOTES 2016 2015£’000 £’000

FIXED ASSETSTangible assets 9 21,463 21,295Investment properties 10 5,370 5,460Investments 11 829 882

27,662 27,637

CURRENT ASSETSStocks and work in progress 49 60Livestock 7,272 7,871Debtors 12 4,965 4,960Cash in hand 53 50

12,339 12,941

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEARBank overdraft 2,531 3,391Creditors 13 1,852 1,855Members loans 7,696 7,024

(12,079) (12,270)

NET CURRENT ASSETS 260 671

TOTAL ASSETS LESS CURRENT LIABILITIES 27,922 28,308

CREDITORS: AMOUNTS FALLING DUE AFTER ONE YEARMembers loans (1,122) (1,855)

26,800 26,453PROVISIONSDeferred tax 14 (361) (475)

NET ASSETS EXCLUDING PENSION SCHEME DEFICIT 26,439 25,978


NET ASSETS INCLUDING PENSION SCHEME DEFICIT 19,452 20,403

CAPITAL AND RESERVESCalled up share capital 16 5,483 5,127Capital reserves 17 10,604 10,505Profit and loss account 17 10,352 10,346

26,439 25,978


18 19,452 20,403

Approved by the directors on 14 March 2017 Signed on behalf of the Board of Directors

P J MACHRAY, OBE CA, Chairman P WATSON, Vice-Chairman LC Secretaries Limited, Secretary


Consolidated statement of changes in equity as at 31 December 2016

Definedbenefit

Called up pensionshare Capital Profit and scheme

capital reserves loss account deficit Total£'000 £'000 £'000 £'000 £'000

Balance as at 1 January 2015 4,566 10,492 11,185 (5,976) 20,267

Profit/(loss) for the year - - (322) - (322)Other comprehensive income for the year - 13 (19) 401 395

Total comprehensive income for the year - 13 (341) 401 73

Issue of shares 556 - - - 556Dividends retained to credit of share capital 5 - - - 5

Total transactions with owners recognised directlyin equity 561 - - - 561

Balance at 31 December 2015 5,127 10,505 10,844 (5,575) 20,901

Profit/(loss) for the year - - 240 - 240Other comprehensive income for the year - 114 (274) (1,412) (1,572)

Total comprehensive income for the year - 114 (34) (1,412) (1,332)

Issue of shares 353 - - - 353Dividends retained to credit of share capital 3 - - - 3Surplus on revaluation now realised - (15) 15 - -

Total transactions with owners recognised directly in equity 356 (15) 15 - 356

Balance as at 31 December 2016 5,483 10,604 10,825 (6,987) 19,925


Society statement of changes in equity as at 31 December 2016

Definedbenefit

Called up pensionshare Capital Profit and scheme

capital reserves loss account deficit Total£'000 £'000 £'000 £'000 £'000

Balance as at 1 January 2015 4,566 10,492 10,606 (5,976) 19,688

Profit/(loss) for the year - - (241) (241)Other comprehensive income for the year - 13 (19) 401 395

Total comprehensive income for the year - 13 (260) 401 154

Issue of shares 556 - - - 556Dividends retained to credit of share capital 5 - - - 5

Total transactions with owners recognised directlyin equity 561 - - - 561

Balance at 31 December 2015 5,127 10,505 10,346 (5,575) 20,403

Profit/(loss) for the year - - 265 - 265Other comprehensive income for the year - 114 (274) (1,412) (1,572)

Total comprehensive income for the year - 114 (9) (1,412) (1,307)

Issue of shares 353 - - - 353Dividends retained to credit of share capital 3 - - - 3Surplus on revaluation now realised - (15) 15 - -

Total transactions with owners recognised directly in equity 356 (15) 15 - 356

Balance as at 31 December 2016 5,483 10,604 10,352 (6,987) 19,452


Consolidated statement of cash flows for year ended 31 December 2016

2016 2015£’000 £’000

CASH FLOWS FROM OPERATING ACTIVITIESOperating profit for year 317 115Tax on profit 14 12

Adjustments forDepreciation 679 711Gain on disposal of fixed assets (10) (2)Rates rebate for previous years 244 -Movement of provisions (4) 50Exceptional pension contribution (499) (499)Trading bonus (47) (39)

363 221Changes inDecrease/(increase) in stock and livestock 600 (807)Decrease in debtors 8 899(Decrease)/increase in creditors (71) 445

537 537

Cash generated from operations 1,231 885

Tax paid - -

Net cash from operating activities 1,231 885

CASH FLOWS FROM INVESTING ACTIVITIESPurchase of tangible assets (939) (1,118)Proceeds from sale of tangible assets 169 32Purchase of investment properties (5) -Disposal of trade investments 53 47

Net cash used in investing activities (722) (1,039)

CASH FLOWS FROM FINANCING ACTIVITIESInterest paid on share capital (148) (113)Increase in share capital 356 561Interest payable (297) (319)Interest receivable 450 558

Net cash used in financing activities 361 687

NET INCREASE IN CASH AND CASH EQUIVALENTS 870 533

CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR (2,870) (3,403)

CASH AND CASH EQUIVALENTS AT THE ENDOF THE YEAR (2,000) (2,870)


Notes on accountsfor year ended 31 December 2016

1 ACCOUNTING POLICIES

STATEMENT OF COMPLIANCEThe accounts are prepared in compliance with FRS 102, 'TheFinancial Reporting Standard applicable in the UK and the Republicof Ireland'. The particular accounting policies adopted are describedbelow.

(a) BASIS OF PREPARATIONThese accounts have been prepared under the historical costconvention, modified to include the revaluation of fixed assets.

The accounts are prepared in sterling, which is the functionalcurrency of the entity.

(b) BASIS OF CONSOLIDATIONThe group accounts consolidate the accounts of ANM GroupLimited with those of its subsidiaries for the year ended 31December 2016, using the acquisition method of accounting. Detailsof the subsidiaries are shown in Note 11.All intra-group transactions, balances, income and expenses areeliminated on consolidation.

(c) GOING CONCERNThese financial statements have been prepared on a going concernbasis.

The current economic conditions present increased risks for allbusinesses. In response to such conditions, the directors havecarefully considered these risks, included an assessment ofuncertainty on future trading projection for a period of at least 12months from the date of signing the financial statements, and theextent to which they might affect the preparation of the financialstatements on a going concern basis.

Based on this assessment, the directors consider that the groupmaintains an appropriate level of liquidity, sufficient to meet thedemands of the business.

In addition, the group’s assets are assessed for recoverability on aregular basis, and the directors consider that the group is notexposed to losses on these assets which would affect their decisionto adopt the going concern basis.

The directors have a reasonable expectation that the group hasadequate resources to continue in operational existence for theforeseeable future and that there are no material uncertainties thatlead to significant doubt upon the group's ability to continue as agoing concern. Thus the directors have continued to adopt the goingconcern basis of accounting in preparing these financial statements.

(d) REVENUE RECOGNITIONTurnover is based on the invoiced value of sales and commissionexcluding VAT.

(e) TANGIBLE FIXED ASSETSTangible assets are initially recorded at cost, and subsequently statedat cost less any accumulated depreciation and impairment losses. Anytangible assets carried at revalued amounts are recorded at the fairvalue at the date of revaluation less any subsequent accumulateddepreciation and subsequent accumulated impairment losses.

(f) DEPRECIATIONDepreciation is calculated so as to write off the cost or valuation ofan asset, less its residual value, over the useful economic life of thatasset as follows:

No depreciation is provided on freehold land. Freehold buildings aredepreciated over their useful lives which range from 30 to 67 years.Other fixed assets are depreciated on the straight-line method overexpected useful lives as follows:-

Equipment, fittings etc. 3 - 10 yearsMotor vehicles 3 - 5 years

(g) IMPAIRMENT OF FIXED ASSETSA review for indicators of impairment is carried out at each reportingdate, with the recoverable amount being estimated where suchindicators exist. Where the carrying value exceeds the recoverableamount, the asset is impaired accordingly. Prior impairments are alsoreviewed for possible reversal at each reporting date.

For the purposes of impairment testing, when it is not possible toestimate the recoverable amount of an individual asset, an estimate ismade of the recoverable amount of the cash-generating unit to whichthe asset belongs. The cash-generating unit is the smallest identifiablegroup of assets that includes the asset and generates cash inflows thatare largely independent of the cash inflows from other assets orgroups of assets.

(h) INVESTMENT PROPERTYLand and buildings are classified as investment properties when theyare held to earn rentals or for capital appreciation or both. Investmentproperties are initially measured at cost which comprises purchaseprice and any directly attributable expenditure. Investment propertiesare subsequently remeasured to fair value at each reporting date withchanges in fair value recognised in profit or loss. Revaluations arecarried out by a professional qualified valuer.

(i) STOCKS, WORK IN PROGRESS AND LIVESTOCKStocks, work in progress and livestock are valued at the lower of costand net realisable value.


Notes on accountsfor year ended 31 December 2016

1 ACCOUNTING POLICIES (Continued)

(j) TAXATIONThe taxation expense represents the aggregate amount of currentand deferred tax recognised in the reporting period. Tax is recognisedin profit or loss, except to the extent that it relates to itemsrecognised in other comprehensive income or directly in equity. In thiscase, tax is recognised in other comprehensive income or directly inequity, respectively.

Current tax is recognised on taxable profit for the current and pastperiods. Current tax is measured at the amounts of tax expected topay or recover using the tax rates and laws that have been enacted orsubstantively enacted at the reporting date.

Deferred tax is recognised in respect of all timing differences at thereporting date. Unrelieved tax losses and other deferred tax assetsare recognised to the extent that it is probable that they will berecovered against the reversal of deferred tax liabilities or otherfuture taxable profits. Deferred tax is measured using the tax ratesand laws that have been enacted or substantively enacted by thereporting date that are expected to apply to the reversal of thetiming difference.

(k) GRANTS RECEIVEDGrants received in respect of capital expenditure are deducted fromthe cost of the relevant assets. Revenue grants are released to profitover the life of the project to which they relate.

(l) LEASES AND HIRE PURCHASE CONTRACTSAssets held under finance leases and hire purchase contracts arecapitalised as fixed assets and depreciated in the normal way. Rentalsunder operating leases are charged to the profit and loss account ona straight-line basis over the lease term.

(m) PENSIONSThe group operates a defined contribution pension scheme.Payments to the defined contribution scheme are charged to theprofit and loss account. The group also operates a defined benefitscheme for certain employees. A defined benefit plan defines thepension benefit that the employee will receive on retirement, usuallydependent upon several factors including age, length of service andremuneration. The liability recognised in the statement of financialposition is the present value of the defined benefit obligation at thereporting date less the fair value of the plan assets at the reportingdate. The defined benefit obligation is calculated using the projectedunit credit method and reviewed annually by independent actuaries.The present value is determined by discounting the estimated futurepayments using market yields on high quality corporate bonds thatare denominated in sterling and that have terms approximating theestimated period of the future payments. Service costs are chargedto profit or loss so as to spread the costs over the service lives ofemployees. Net interest on the net defined benefit liability isdetermined by multiplying the net defined benefit liability by thediscount rate, as determined at the start of the annual reportingperiod, taking account of any changes in the net defined benefitliability during the period as a result of contribution and benefitpayments. Net interest is charged to profit or loss in the period.Remeasurements of the net defined benefit liability are chargedthrough other comprehensive income in the period in which theyoccur. Remeasurement of the net defined benefit liability recognisedin other comprehensive income is not reclassified to profit or loss ina subsequent period. Remeasurements of the net defined benefitliability comprise actuarial gains and losses, the return on plan assets,excluding amounts included in net interest on the net defined benefit

liability. For reasons of clarity, all adjustments to the profit and lossaccount and hence revenue reserves in respect of FRS 102 havebeen separately disclosed.

(n) INVESTMENTSInvestments held as fixed assets are stated at cost less provision forany permanent diminution in value.

(o) FOREIGN CURRENCY TRANSACTIONSTransactions denominated in foreign currencies are translated intosterling at the rates ruling at the date of the transactions.

(p) FINANCIAL INSTRUMENTSFinancial instruments are classified and accounted for, according tothe substance of the contractual arrangement, as either financialassets, financial liabilities or equity instruments. An equity instrumentis any contract that evidences a residual interest in the assets of thecompany after deducting all of its liabilities. Details of all financialassets and liabilities are dealt with in the accounts at carrying valuesequating to fair value. All credit, liquidity and currency risks associatedwith financial instruments are continuously reviewed to ensure thegroup’s exposure is minimised.

(q) INTEREST RECEIVABLE AND SIMILAR CHARGESInterest receivable on livestock agreements has been accounted forin the year on an accruals basis to match the accounting treatment ofinterest payable and similar charges.

2 CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS

In preparing the financial statements, management is required tomake estimates and assumptions which affect reported income,expenses, assets, liabilities and disclosure of contingent assets andliabilities. Use of available information and application of judgementare inherent in the formation of estimates, together with pastexperience and expectations of future events that are believed to bereasonable under the circumstances. Actual results in the futurecould differ from such estimates.

Useful economic lives of tangible assetsThe annual depreciation charge for tangible assets is sensitive tochanges in the estimated useful economic lives and residual value ofthe assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflectcurrent estimates, based on technological advancement, futureinvestments, economic utilisation and the physical condition of theassets.

Impairment of debtorsThe group makes an estimate of the recoverable value of trade andother debtors. When assessing impairment of trade and otherdebtors, management considers factors including the current creditrating of the debtor, the ageing profile of debtors and historicalexperience.

Defined benefit pension schemeThe group has obligations to pay pension benefits to certainemployees. The cost of these benefits and the present value of theobligation depend on a number of factors, including, life expectancy,salary increases, asset valuations and the discount rate on corporatebonds. Management estimates these factors in determining the netpension obligation in the balance sheet. The assumptions reflecthistorical experience and current trends.

Notes on accounts for year ended 31 December 2016

3 THROUGHPUT AND TURNOVER

Throughput and turnover were contributed as follows. All sales between group companies have been fully eliminated on consolidation.

2016 2015£’000 £’000

THROUGHPUTParent Society -Value of livestock and othergoods sold on commission 121,160 120,014Direct sales 1,757 1,461

Aberdeen & Northern (Estates) Limited - Rendering of services 484 636

Direct sales - Total value of direct sales by other group companies 1,379 1,392

124,780 123,503

TURNOVERParent society -Commission from sales of livestock and other goods 5,004 4,876Direct sales – fees for valuations and other services rendered andincome from farming activities 1,757 1,461

Aberdeen & Northern (Estates) Limited -Rendering of services 484 636

Thainstone Events Limited -Direct sales – sales from the supply of catering services 1,268 1,137

Thainstone Leasing Company Limited - Direct sales – from the sale ofmotor vehicles 111 255

8,624 8,365



4 TRADING PROFIT

2016 2015£’000 £’000

Group trading profit was contributed as follows:-

Parent society 373 135Aberdeen & Northern (Estates) Limited 52 173Thainstone Events Limited 9 7Thainstone Leasing Co. Ltd. 36 39

470 354Group trading profit is arrived at after charging/(crediting):-

Depreciation of tangible fixed assets 679 711Gain on sale of fixed assets other than property (10) (2)Directors’ emoluments for services 54 51Auditors’ remuneration 37 38

760 798



5 DEFINED BENEFIT PENSION SCHEME BEFORE TAXATION

2016 2015£’000 £’000

The charge to profit and loss for the year is:- Service cost - -- Net interest expense (262) (285)

(262) (285)

6 STAFF NUMBERS AND COSTS 2016 2015

No. No.The average number of persons employed (including part-timestaff) by the group during the year was 200 203

£’000 £’000

Wages and salaries 3,840 3,811National insurance 361 360Other pension costs - defined contribution schemes 132 135

4,333 4,306

7 INTEREST ON SHARE CAPITAL

The interest relates to the 12 month period to 31 March 2017. In 2015 the interest was paid for the 15 month period from January 2015 through to March 2016.



8 TAXATION

2016 2015£’000 £’000

The taxation (charge)/credit which is based on the results of the year is made up as follows:-

Corporation tax 14 -Adjustments in respect of previous periods - (7)

14 (7)

Transfer (from)/to deferred taxation (28) 10

(14) 3

Factors affecting current tax charge -

Profit/(loss) on ordinary activities before taxation 189 (124)

Profit/(loss) on ordinary activities at 20% (2015-20.25%) 38 (25)Expenses not deductible for tax purposes 19 22Surplus on disposal of property - (4)Short term timing differences - (36)Tax losses unutilised (1) 96Defined benefit pension (47) (43)Adjustments in respect of previous periods - (7)Deferred tax adjustment for previous periods (23) -

(14) 3



9 TANGIBLE FIXED ASSETS

£’000 £’000 £’000 £’000At 31.12.15 Additions Disposals At 31.12.16

THE GROUPCost or valuation: Freehold properties 20,547 639 (148) 21,038Equipment, fittings etc. 4,121 208 (23) 4,306Motor vehicles 669 92 (33) 728

25,337 939 (204) 26,072

Charge for OnAt 31.12.15 Year Disposals At 31.12.16

Depreciation:Freehold properties 499 177 - 676Equipment, fittings etc. 2,835 381 (20) 3,196Motor vehicles 329 121 (27) 423

3,663 679 (47) 4,295

Net book value 21,674 21,777

£’000 £’000 £’000 £’000At 31.12.15 Additions Disposals At 31.12.16

PARENT SOCIETYCost or valuation:Freehold properties 20,547 639 (148) 21,038Equipment, fittings etc. 3,678 192 (23) 3,847Motor vehicles 110 31 (5) 136

24,335 862 (176) 25,021

Charge for OnAt 31.12.15 Year Disposals At 31.12.16

Depreciation:Freehold properties 499 177 - 676Equipment, fittings etc. 2,459 346 (20) 2,785Motor vehicles 82 20 (5) 97

3,040 543 (25) 3,558

Net book value 21,295 21,463



9 TANGIBLE FIXED ASSETS (Continued)

Note - The cost or valuation figures at 31 December 2016 are arrived at as follows:-

ParentGroup Society£’000 £’000

Freehold properties –Valuation at 31 October 2012 17,949 17,949Subsequent additions at cost 3,089 3,089

21,038 21,038

Freehold properties were revalued in 2012 by independent Chartered Surveyors on the basis of open market value for existing use.

Group Parent Society

10 INVESTMENT PROPERTIES 2016 2015 2016 2015£’000 £’000 £’000 £’000

At 31 December 2015 5,460 4,988 5,460 4,988Additions in year 5 - 5 -Transferred from fixed assets at valuation - 544 - 544Revaluations in year (95) (72) (95) (72)

At 31 December 2016 5,370 5,460 5,370 5,460

The investment properties were revalued in 2016 by independent Chartered Surveyors on the basis of current market value, subject to existing tenancies.



11 INVESTMENTS


NOTES 2016 2015 2016 2015£’000 £’000 £’000 £’000

Subsidiary undertakings – at cost (a) - - 50 50Associated undertakings and trade investments – at cost (b) 779 832 779 832

779 832 829 882

All of the above investments are unlisted.

Note:-(a) Details of the trading subsidiaries are as follows:-

Percentage ofequity shares held

Country of Principal Parentincorporation Activity Group Society

Aberdeen & Northern (Estates) Limited Scotland Land and estate agents 100% 100%

Thainstone Events Limited Scotland Caterers 100% 100%(formerly Highland Cuisine Limited)

Thainstone Leasing Co. Ltd. Scotland Vehicle leasing/sales 100% 100%

The Parent Society holds 100% of the equity shares, directly and indirectly, in its non trading subsidiaries, Scotch Premier Meat Limited, Taste ofGrampian Limited and YPM 2012 Limited. Scotch Premier Meat Limited and Taste of Grampian Limited are incorporated in Scotland and YPM 2012Limited is incorporated in England.

(b) Associated undertakings and trade investments :-

The Parent Society has investments in Scotbeef Inverurie Limited and Yorkshire Premier Meat Limited and an interest in Maverston LLP, a limitedliability partnership, whose principal activity is property development. The investment in Maverston LLP has been fully written off previously.



12 DEBTORS


2016 2015 2016 2015£’000 £’000 £’000 £’000

Trade debtors 1,340 1,347 1,067 993Other debtors 146 95 146 118Prepayments 335 334 317 309Current taxation - - 11 47Owed by subsidiary undertakings - - 184 200Owed by associated undertakings 3,240 3,293 3,240 3,293

5,061 5,069 4,965 4,960

Amounts owed by group undertakings are unsecured, interest free, have no fixed date of repayment and are repayable on demand.

13 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Trade creditors 599 659 504 565Amount owed to subsidiary undertakings - - 23 10Current taxation 14 - - -PAYE national insurance and VAT 329 341 270 254Accruals and deferred income 624 535 603 535Other creditors 534 568 289 297Proposed trading bonus 47 35 47 35Proposed interest on share capital 116 145 116 145Hire purchase - 14 - 14

2,263 2,297 1,852 1,855

Amounts owed to group undertakings are unsecured, interest free, have no fixed date of repayment and are repayable on demand.



15 PENSION SCHEMES

The group operates a defined contribution pension scheme.

The defined contribution scheme, which commenced on 1 January 2000, is a group personal pension plan operating on a defined contribution basis and isavailable to all group employees.

The defined benefit scheme, closed to new entrants as of 28 February 1999, provides members with defined benefits based on salary. The benefit promisesare funded in advance and the scheme assets are held in a separate trustee administered fund. Contributions to the scheme are assessed in accordance withthe advice of a qualified actuary on the basis of triennial valuations using the projected unit method of valuation.

The last triennial valuation was conducted as at 1 January 2013 and updated at 31 December 2016 by a qualified independent actuary. The results of theactual valuation at 1 January 2013 showed a deficit of £7.2m. At this valuation the market value of the scheme’s assets amounted to £21 million and theactuary determined that this represents 75% of the scheme’s liabilities.

In accordance with FRS 102 the defined benefit pension scheme is now recognised in the parent society accounts as they are the sponsoring company.

2016 2015Movement in defined benefit pension scheme deficit during the year £’000 £’000

Deficit at 1 January (6,969) (7,565)

Movement in year :- Current service cost - -- Contributions 499 499- Settlements / curtailments - -- Net interest expense (262) (285)- Actuarial (loss)/gain in Other comprehensive income (1,686) 382

Deficit at 31 December (8,418) (6,969)

Less: Deferred taxation 1,431 1,394

Deficit net of taxation (6,987) (5,575)

14 DEFERRED TAXATION


2016 2015 2016 2015£’000 £’000 £’000 £’000

The accounting policy for deferred taxation is explainedin note 1(j). The provision made for deferred taxation is as follows:-

Provision -Accelerated capital allowances (11) (6) - -Revaluation reserve 361 475 361 475

350 469 361 475



15 PENSION SCHEMES (Continued)

2016 2015Analysis of the amount in Other Comprehensive Income £’000 £’000

Asset return less interest 2,781 (459)Experience gains/(losses) on benefit obligation 453 695Effect of assumptions changes on benefit obligation (4,920) 146

Actuarial (loss)/gain in Other comprehensive income (1,686) 382

History of experience gains and losses-

Difference between the asset return and the interest income 2,781 (459)- as % of scheme assets 11% 2%

Experience gains/(losses) on obligation 453 695- as % of obligation 1% 2%

Total amount recognised in Other comprehensive income (1,686) 382- as % of obligation 5% 1%

In terms of the requirements of FRS 102, the scheme actuary has reported the following:

The major assumptions used (in nominal terms) - As at As at31.12.16 31.12.15

Pension escalation in payment (limited price indexation) 2.4%-3.7% 2.3%-3.7%Consumer price inflation (CPI) 2.2% 2.1%Discount rate 2.8% 3.9%Retail price inflation (RPI) 3.3% 3.1%

The mortality assumptions used were as follows -

Longevity at age 65 for current pensioners:- Men 21.8 22.3- Women 23.8 24.6

Longevity at age 65 for future pensioners:- Men 23.5 24.1- Women 25.7 26.5



15 PENSION SCHEMES (Continued)

Reconciliation of scheme assets and liabilities - Assets Liabilities Total£’000 £’000 £’000

At 1 January 2016 22,815 (29,784) (6,969)Benefits paid (1,888) 1,888 -Employer contributions 499 - 499Interest income/(expense) 863 (1,125) (262)Remeasurement gains/(losses)- Actuarial gains/(losses) - (4,467) (4,467)- Return on plan assets excluding interest income 2,781 - 2,781

At 31 December 2016 25,070 (33,488) (8,418)

2016 2015Total cost recognised as an expense:

Net interest expense 262 285

No amounts (2015– nil) were included in the cost of assets.

The fair value of the plan assets was:

Equities (including property) 15,091 14,122Bonds 9,547 8,570Cash 138 123Insured Pensions 294 -

Total market value of assets 25,070 22,815



16 SHARE CAPITAL 2016 2015 2016 2015£’000 £’000 £’000 £’000

1,281 (2015 –1,301) cumulative preferenceshares of £1 each fully paid 1 1 1 1

5,462,068 (2015 –5,109,228) ordinaryshares of £1 each fully paid 5,462 5,109 5,462 5,109

Dividends retained to credit of share capital 20 17 20 17

5,483 5,127 5,483 5,127

17 RESERVES

Capital Reserves – This reserve consists of property revaluations less the associated deferred tax.

Profit and loss account – This reserve records retained earnings and accumulated losses

Defined benefit pension scheme deficit – This comprises the deficit on the defined benefit contribution scheme.




18 RECONCILIATION OF MOVEMENTS ON SHAREHOLDERS FUNDS


2016 2015 2016 2015£’000 £’000 £’000 £’000

Movement for the financial year after taxation 240 (322) 265 (241)Remeasurements of net defined benefit obligation (1,686) 382 (1,686) 382Share capital issued 356 561 356 561Deferred tax movement on revaluation reserve 114 13 114 13Opening shareholders funds at 1 January 20,901 20,267 20,403 19,688

Closing shareholders funds at 31 December 19,925 20,901 19,452 20,403

All of the above funds are attributable to members.

19 CAPITAL COMMITMENTSGroup Parent Society

2016 2015 2016 2015£’000 £’000 £’000 £’000

The directors have authorised future capital expenditure which amounts to -Contracted for 323 362 323 362

20 OPERATING LEASE COMMITMENTSGroup Parent Society

2016 2015 2016 2015£’000 £’000 £’000 £’000

The future minimum lease payments under non-cancellableoperating leases are as follows;

Operating leases for equipment which expire -Between two and five years 5 - 5 -

21 RELATED PARTY TRANSACTIONS

In the year to 31 December 2016, in normal arms length transactions, in the ordinary course of business and on normal terms thegroup have –

a) purchased goods at a total cost of £89,652 (2015 - £73,174) from non-executive directors or their businesses.b) derived commission of £17,107 (2015 - £18,924) from sales of livestock consigned by these directors or their businesses.c) Sold motor vehicles at open market valuation of £ - (2015 - £68,250).



DIRECTORS' STATEMENT OF RESPONSIBILITIESThe directors are required by legislation to prepare accounts foreach financial year which give a true and fair view of the state ofaffairs of the society and the group at the end of the financialyear and of the profit for that year. They are also responsible formaintaining proper accounting records which disclose withreasonable accuracy at any time the financial position of thesociety and to enable them to ensure that the accounts complywith the requirements of the Co-operative and CommunityBenefit Societies Act 2014. They have general responsibility fortaking such steps as are reasonably open to them to safeguardthe assets of the group and prevent and detect fraud and otherirregularities.

The directors confirm that suitable accounting policies have beenapplied consistently, that reasonable and prudent judgements andestimates have been used in the preparation of the accounts, thatapplicable accounting standards have been followed and that theaccounts have been prepared on a going concern basis.

INDEPENDENT AUDITOR’S REPORT TO THESHAREHOLDERS OF ANM GROUP LIMITEDWe have audited the foregoing accounts which have beenprepared under the historical cost convention (as modified by therevaluation of freehold property) and the accounting policies asset out in note 1 to the accounts.

This report is made solely to the society’s shareholders, as abody, in accordance with the Co-operative and CommunityBenefit Societies Act 2014. Our audit work has been undertakenso that we might state to the society’s shareholders thosematters we are required to state to them in an auditors' reportand for no other purpose. To the fullest extent permitted by law,we do not accept or assume responsibility to anyone other thanthe society and the society’s shareholders as a body, for our auditwork, for this report, or for the opinions we have formed.

RESPECTIVE RESPONSIBILITIES OF DIRECTORS ANDAUDITORSAs described above, the society’s directors are responsible forthe preparation of the accounts in accordance with applicablelaw and United Kingdom Accounting Standards (United KingdomGenerally Accepted Accounting Practice).

It is our responsibility to audit the accounts in accordance withrelevant legal and regulatory requirements and InternationalStandards on Auditing (UK and Ireland).

We report to you our opinion as to whether the accounts give a

true and fair view and are properly prepared in accordance withthe provisions of the Co-operative and Community BenefitSocieties Act 2014. We also report to you if, in our opinion, theDirectors' Report is not consistent with the accounts, if thegroup has not kept proper accounting records, if we have notreceived all the information and explanations we require for ouraudit, or if information specified by Law regarding directors' feesand transactions with the group is not disclosed.

We read the Directors' Report and consider the implications forour report, if we become aware of any apparent misstatementswithin it.

BASIS OF OPINIONWe conducted our audit in accordance with InternationalStandards on Auditing (UK and Ireland) issued by the AuditingPractices Board. An audit includes examination, on a test basis, ofevidence relevant to the amounts and disclosures in theaccounts. It also includes assessment of the significant estimatesand judgements made by the directors in the preparation of theaccounts, and of whether the accounting policies are appropriateto the group’s circumstances, consistently applied and adequatelydisclosed.

We planned and performed our audit so as to obtain all theinformation and explanations which we considered necessary inorder to provide us with sufficient evidence to give reasonableassurance that the accounts are free from material misstatement,whether caused by fraud or other irregularity or error. In formingour opinion we also evaluated the overall adequacy of thepresentation of information in the accounts.

OPINIONIn our opinion the accounts give a true and fair view, inaccordance with United Kingdom Generally Accepted AccountingPractice, of the state of the affairs of the group and the society at31 December 2016 and of the loss and cash flows for the yearended on that date, have been properly prepared in accordancewith the provisions of the Co-operative and Community BenefitSocieties Act 2014, and the information given in the Report ofthe Directors is consistent with the accounts.

Kathleen Kirkland MA CA (Senior Statutory Auditor)For and on behalf ofWILLIAMSON & DUNNChartered Accountants and Statutory Auditors3 West Craibstone Street, Aberdeen, AB11 6YW14 March 2017


Scotland's premier independent plant,machinery and equipment auction

www.anmgroup.co.uk

THE ANM GROUP LIMITEDThainstone Centre, Inverurie, AB51 5XZ, ScotlandTel: 01467 623700Email: [email protected]

ABERDEEN & NORTHERN MARTSThainstone Centre, Inverurie, AB51 5XZ, ScotlandTel: 01467 623710Email: [email protected]

Regional CentresCaithness Livestock CentreTel: 01955 621363Email: [email protected]

Elgin Auction CentreTel: 01343 547047Email: [email protected]

ABERDEEN & NORTHERN (ESTATES) LIMITEDThainstone Centre, Inverurie, AB51 5XZ, ScotlandTel: 01467 623800Email: [email protected]

THAINSTONE EVENTSThainstone Centre, Inverurie, AB51 5XZ, ScotlandTel: 01467 623867Email: [email protected]

THAINSTONE SPECIALIST AUCTIONSThainstone Centre, Inverurie, AB51 5XZ, ScotlandTel: 01467 623770Email: [email protected]

ANMG R O U PE S T A B L I S H E D 1 8 7 2

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