The boss of H&H Group has insisted the future remains bright despite a tumultuous year which saw the Carlisle-headquartered operation make a pre-tax loss and operating profits plummet by more than £900,000.

H&H Group chief executive Richard Rankin said Brexit-fuelled economic uncertainty along with the Beast from the East followed by a record-breaking heatwave lay behind a poor set of financial results for the past 12 months.

A one-off pension equalisation charge also took a chunk out of the group’s operating profits, which fell from £940,000 in 2017-2018 to just £31,000 for the year ending June 20, 2019.

The Rosehill Industrial Estate headquartered group – which encompasses auctioneering, property, insurance, commercial services and printing businesses – also reported a pre-tax loss of £371,000, compared to the pre-tax profit of £636,000 it made in the previous year.

Turnover was also down, from £14.72m to £13,58m, although net assets “have remained strong” at £17.2m, the group said.

While Mr Rankin admitted the figures may appear stark, he insisted the future remained bright with the financial performance across the group on the first quarter of 2019-20 either on or ahead of budget.

“Despite the loss, which we know is as a direct result of the whole of the UK being hit by continued economic uncertainty as well as climatic conditions, the group overall has performed solidly,” he said.

“In no way are we any way close to dire straits – as I have said to our staff, we have to put this behind us and move on. Market conditions have been against us.

“Fortunately, we are a sizeable organisation, with a diverse range of businesses, a broad skill set, and tremendous teams – and as such, I believe we are in strong position to consolidate our portfolio of services and continue to grow our business.

“We have a number of collaborations happening in the next three months or so and new additions to the team that will add value. We stand firmly on strong foundations and will, as we have always done, continue to offer the very best service, identify and grasp new opportunities and ensure that we are sustainable, fit for the future and for the needs of the next generation.”

“I am very positive about the future.”

Mr Rankin said the livestock auctioneering and marketing division, Harrison & Hetherington, had “experienced two sides of the performance coin”, with its market share and services “moving in the right direction” despite the financial results comparing poorly to previous years.

“We suffered from both a fall in volumes, particularly sheep over the 2018 autumn season and more significantly in lower prices,” he said.

“Both factors were beyond our control and both are mirrored throughout the overall livestock trading industry and our neighbouring marts.

“This has had the expected impact on our top line, which, given the nature of the business, has flowed through to our bottom line. Overall, the results reflect the current turmoil in our industry, with uncertainty affecting both sheep and cattle.”

The performance of its property arm – which during the year was bolstered by the acquisition of Smeatons Estates Agency and saw the consolidation of its land, property and estate agencies under the new H&H Land & Estates – also “held strong” apart from residential sales – reflecting industry and national trends.

Its print, signage and graphic design arm also saw a downturn in sales, again reflecting the situation in the wider print industry, although Mr Rankin said the acquisition of Print Graphic earlier in the year had seen encouraging growth.

He described H&H Insurance Broker, which saw real terms growth and an increase in bottom line profits, as a “consistent performer”.

Meanwhile, the exceptional one-off pension charge, determined by an independent actuary, may yet be reversed as a result of a current High Court challenge to the legality of these types of charges.

The H&H Group board has recommended against any final dividend to be paid on top of the interim dividend of 5p per share.

In its annual reports and accounts, it said: “The board viewed any such payment to be irresponsible and ill-advised in light of these results and the current economic climate. Whilst the group retains a strong asset base and balance sheet the board has a responsibility to secure cash flow and build long term value.”

The average share price during the year was £26.78 compared to £29.38 in the previous year, while total shareholder funds decreased from £18.34m in 2017-18 to £17.17m.

H&H Group has 300 members of staff and operates across the north of England and Scotland.