19 April 2010 - SALE OF LAND AT CARTMEL EXCEEDS ALL EXPECTATIONS
LAND AT GREENBANK, CARTMEL, GRANGE-OVER-SANDS
Penrith Farmers’ & Kidd’s Land Agency offered for sale by Public Auction approximately 47 acres (19 hectares) of grassland in six lots a short distance to the north of Cartmel village at 2.30pm on Thursday, 19th April 2010.
The Auction was conducted by William Bashall of Penrith Farmers’ & Kidd’s in Cartmel Village Hall.
Selling on behalf of Sandy Alexander of Greenbank Farm, whose family had a long association with the land, the Lots were situated in very attractive, rural positions around the hamlet of Green Bank approximately 1 mile north of Cartmel.
A healthy amount of interest had been generated prior to the sale and a number of offers were received. The sellers however decided to take the land to auction; a decision that was shown to be right with the sale room starting to fill well before the auction started.
All but one of the Lots had direct roadside access off the council-maintained Greenbank Lane and all (except one Lot being approximately 1 acre of woodland) had a natural water supply. All were subject to a Management Agreement under the Lake District Environmentally Sensitive Area (ESA) and each buyer of the grassland Lots were obliged to take over the respective Single Payment Entitlements at an additional charge.
Lot 1 situated to the north of Greenbank Farm and extending to 23.52 acres or thereabouts of pastureland was sold for £130,000 (£5,527/ac). The adjacent Lot 5 comprising 1.08 acres of mainly broadleaved amenity woodland sold for £21,000 (£19,444/ac).
The other Lots were located south of Greenbank Farm, closer to Cartmel and adjoined each other.
Lot 2 being 8.45 acres of meadow land was sold for £114,000 (£13,491/ac). Lot 3, the smallest Lot being 3.70 acres of meadow land was sold for £57,000 (£15,405/ac) and the adjacent Lot 4 comprising 5.46 acres of meadow and pasture land was sold for £58,000 (£10,622/ac).
Lot 6 being 5.48 acres of meadow land was withdrawn at the auction prior to being placed in the market.
Lots 1 and 2 were bought buy the same person. Lots 3 and 4 were also bought together but by another buyer. Both buyers had local links with the area but were based out of the region. The woodland was bought by a local buyer.
Whilst plenty of interest had been received from local farmers, ultimately all the land was sold to persons outside agriculture.
Oliver Bateman, the agents with responsibility for the auction added:
“We knew of an auction sale in 2009 of about 40 acres of land in a single block which was fairly close to the Greenbank Farm. This achieved around £6,000 per acre so we had a good idea our land would sell well. In this case we managed to provide buyers with smaller Lots which helped to achieve a premium for the seller. Good offers were turned down prior to the auction but even our expectations were exceeded and to achieve such prices for decent grassland is a very pleasing result. All the land was well outside the village boundary and some was within the National Park so there was no ‘hope’ value in this case. There appears no shortage of people, both from within the agricultural community and without, who are still seeking to invest in decent agricultural property. PFK have been involved with this property over a number of years and we’re delighted to provide the seller with the means to begin the next stage of his plans for the farm”
O M Bateman BSc (Hons) MRICS FAAV
7th May 2010
PFK Land Agency
Agricultural Hall
Skirsgill
Penrith CA11 0DN
Tel: 01768 866611 Fax: 01768 895532
e-mail: landagency@penrithfarmers.co.uk
www.pfandk.co.uk
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13 April 2010 - GRASS LETTING AUCTION RESULTS
CONTINUED DEMAND RESULTS IN GOOD GRASS LETTING PRICES
Penrith Farmers’ & Kidd’s Land Agency offered to let by Public Auction, various blocks of summering land in the Penrith area at 12.00 noon on Tuesday, 13th April 2010.
The Auction was conducted by Richard Morris of Penrith Farmers’ & Kidd’s in the Hired Lad, Penrith Auction Mart where 650 acres were offered.
Steady interest had been generated prior to the sale and this was borne out by a packed Auction room as the sale began. Land owned by 14 clients was offered in 40 lots, most of which included fertiliser in the letting. One lot was let privately before reaching the market. New land comprised a block close to Shap and another near Hutton Roof. A new instruction for land at Lamonby was withdrawn prior to the auction.
The sale proceeded at a brisk pace and at the close, all of the land had been let.
For summering land with fertiliser included, an average of approximately £112 per acre was achieved. For summering land with no fertiliser included, an average of approximately £93 per acre was achieved.
In all cases, the landowners will continue to claim the land under the Single Payment Scheme and draw the respective payments.
Oliver Bateman, the Agent with responsibility for the Auction added:
“Our fertilised average remained almost the same compared to 2009 whilst for unfertilised land, the rate is slightly down. Last year there was a phenomenal demand for all types of land but there are still decent numbers of farmers in the market despite what appears to be a year on year reduction in the numbers of active farmers nationally. All other things being equal, where every landowner letting land in the auction claims the Single Payment, such grass let averages may continue to fall in future as the area payment builds up.
It is good to see respectable prices still being achieved and we are pleased with the result and with the service we supply to both landowners and graziers looking for an open, market driven price”.
13th April 2010
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16 February 2010 - SPS DEADLINE
SPS DEADLINE – MIDDLE OF MAY
IT WILL SOON BE HERE!
Your SPS application form is one of, if not the, most important pieces of paper you will receive this year.
Don’t leave it until the last minute to complete.
Contact PFK LAND AGENCY, book an appointment and we will complete and submit your application form for you.
Or call us for advice & guidance on SPS generally – 01768 866611
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16 February 2010 - UPLANDS ENTRY LEVEL STEWARDSHIP SCHEME
PREVIOUSLY CLAIMED HFA?
If so, you may need to enter into the new
UPLANDS ENTRY LEVEL
STEWARDSHIP SCHEME
if you wish to continue to receive
uplands support payments.
Contact PFK LAND AGENCY for more
information on this new scheme and the existing
Environmental Schemes which are available –
01768 866611
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16 February 2010 - GRASS LETTING SERVICE
GRASS LETTING SERVICE
At PFK Land Agency, we are now organising our Grass Lets for the forthcoming season. We will be letting land for summering both via Private Treaty and Public Auction and we would be happy to hear from owners with land available to let or from farmers seeking additional temporary grazing/mowing land to add to their holdings.
We deal with numerous blocks of land around Penrith, Appleby and Kirkby Stephen as well as the wider areas of North Cumbria and the Eden Valley.
It is our intention to hold a Grass Let Auction in the Hired Lad, Penrith Auction Mart in early April. Many of our Private arrangements will be agreed in March so please call Oliver Bateman at our Penrith Office on 01768 866611 as soon as possible to discuss either your instructions or requirements.
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16 February 2010 - FARM LAND PRICES 2009
FARM LAND MARKET 2009
2009 has been characterised by tight supply, strong demand and high prices (the first two contributing to the third). Sales by Public Auction have generally performed better than by Private Treaty, mainly due to strong competition. Blocks of land less than 10 acres regularly achieved £8-£10,000 per acre and in some cases, reaching over £12,500 per acre. Per acreage values for larger blocks tended to be lower but it was gratifying to achieve £6,670 per acre for a block of 76 acres at Hunsonby recently.
Farmland still appears to be seen as a good long-term investment and also hedge against inflation. The current capital tax regime also treats agricultural property favourably (although there are no guarantees this will continue) and with interest base rates remaining at half of 1%, many investors believe their money will work harder if ‘ploughed into land’.
From a practical point of view, there has been little historic correlation between farmland values and farmgate prices but with cattle and sheep making good money at the moment, this might have provided a confidence boost to farmers seeking land in order to expand their holdings. This is borne out by our analysis of those who have bought land from our clients this year, the majority of whom being active, local farmers despite the increasing trend for non-farming buyers to enter the market.
As to the future, it is thought that the need to increase food production and the diminishing supply of land will continue to support values. Unless 2010 sees a significant increase in the amount of land sold, all other things being equal, there is little to suggest that the steady upward trend in the value of farmland should not continue.
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15 December 2009 - REPORT ON THE PENRITH FARMERS' AND KIDD'S PLC ANNUAL GENERAL MEETING
REPORT ON THE PENRITH FARMERS' AND KIDD'S PLC; AGM HELD ON 15.12.09 AT 11 AM
The Chairman Mr R Good (RG) welcomed everyone to the 134th AGM of the company and stated;-
“We have weathered the recessionary storm thus far and turned a small but reasonable profit, thanks in good part to the good offices of the staff who have been very supportive as always. We have quite a number of written questions submitted this year and anything I have to say I will undoubtedly say in answer to those questions.
The questions are largely related to the accounts and therefore I will raise those questions and give the answers at that point in the Agenda after the accounts have been proposed and seconded.
Without further ado I will launch on the Agenda and firstly call on the Secretary to read the Notice convening the meeting unless you are content to take that Notice as read. Are you so content? Thank you.
I also suggest the report of the Auditors be taken as read and again can that be agreed? Thank you.
The report and the accounts have been in your hands for the statutory period and therefore I propose that the report of the Directors and the audited accounts for the year ended 31st August 2009 now laid before the meeting be received and I ask Richard Morris (RCM) to second the resolution.”
RCM: I second the resolution.
RG: As I mentioned we asked for questions in writing and we have those questions. Eventually the questions and the answers will be posted on the Company website so all the shareholders can read them. We have received written questions from three shareholders.
The first have been raised by Mr Neil Stuart (NS) and I would ask him to read out each of his questions in turn so that I may reply to them individually.
NS: The proposed dividend of 10 pence will cost approximately £32,000 and is covered 3.28 times by the post tax profit of £105,000. A dividend of 15 pence would have very adequate cover of 2.2 and there are net current assets of £1.25m. I therefore suggest that a final dividend of 15 pence is paid.
RG: This question of course does actually relate to Resolution 2 on the Agenda – the dividend – and in reply I would say that the Directors have carefully considered their dividend recommendation, bearing in mind their duty to all stakeholders such as staff, creditors and judging what adequate cash returns are required, we took into account these duties, we took into account the fact that the recession is still with us and that we do have plans for expansion which may need the investment of capital in the forthcoming year. Therefore our recommendation is a somewhat cautious and prudent dividend of 10 pence per share. I do have to say in further answer to your question that pursuant to Regulation 102 of Table A which is incorporated in our Articles of Association no dividend may be declared by the Company that exceeds the amount recommended by the Directors. On the other hand if any shareholder wishes to propose a lower dividend than 10 pence then they will have the opportunity to do so when we reach Resolution 2 on the Agenda, but I am afraid a dividend higher than 10 pence cannot be put before the meeting. Your next question please.
NS: When will the final dividend be paid?
RG: On or about 16 January 2010.
NS: Most unusually, there is no note relating to Administrative Expenses giving information as to the breakdown. Can this information be given please?
RG: I cannot, I’m afraid, agree with the word unusually; it is not usual to give this information. It has not been given in previous years accounts and under the Companies Act 2006 which has made considerable changes of course in the information you must supply, under that Act there is no statutory requirement to give this information. But you will see that Notes 3 and 9 to the Accounts do give extra information. Could we have the fourth question please.
NS: Although turnover figures are given for the five profit centres, but no profit figures are given. Can this vital information be supplied please?
RG: Thank you. Again you did ask this question last year Mr Stuart and we have considered the question, as we must and should, we found no reason to change the reply which we gave last year. The answer to your question is actually given in Note 2 to the Accounts and I’ll quote from that “the disclosure of segmental profit or loss would be unfairly prejudicial to the interests of the group”. In further explanation, and this is the explanation I gave last year, and it is valid I believe, the trading arm of the Company acts as one in providing services to the public and work is very often shared or passed around among the various centres. Thus, if we attempted to break down the profits for each profit centre, the information would be inaccurate and probably misleading. In any event, any such breakdown might provide valuable information to our competitors.
NS: Annual Reports invariably give information regarding Directors’ shareholdings including any changes during the year. Can this information be given please; now and in subsequent years.
RG: Thank you, yes in past years this information has been given but there are considerable changes that I mentioned due to the Companies Act 2006 and the information is not statutory information required to be in the Accounts. I can, however, add that the Directors’ shareholdings remain the same as last year, except that Mr Morris has acquired 200 more shares. The share registers are here, they are open to any shareholder to inspect now or indeed at any time. The information is there, we are not required to publish it in the annual Accounts.
NS: Annual Reports invariably state the age of directors; can this information be given please?
RG: Again this is not statutory information under the Companies Act 2006 and I cannot see what particular relevance this has for shareholders. However, if any of you shareholders do wish to send birthday cards the information is: Mr Bashall born on 21 December 1963, Mrs Brown born on 3 January 1960, Mr Blue born on 16 March 1952, myself born on 31 December 1945, Mr Morris born on 12 May 1953, Mr Mossop born on 25 July 1945 and Mr Stalker born on 11 January 1951 and in fact I note that mine is the first birthday on the list.
NS: Two new leases have been granted; if these are long leases, do they incorporate landlord’s break clauses?
RG: Thank you. No they are in fact both short leases, one for a twelve month term with no break clause and the other is simply on three months notice by either party.
NS: We have an investment valued at £1,026 which appears to produce a dividend of £22. What is this?
RG: It is historical, they are shares in Farmers’ First Plc and Farmstock Net and the LAK group which were originally shares in Kendal auction mart.
NS: Has any party expressed any interest in acquiring the freehold of the Skirsgill site.
RG: The simple answer to that is no.
NS: Has the Company approached any party with a view to disposing of the Skirsgill site.
AG: Again the answer is no.
RG: thanked Mr Stewart.
RG: We have now have further questions raised by Mr M W Veitch (MWV). I wonder if you would mind reading out your questions individually please.
MWV: Mr Chairman, I am a new shareholder so this is my first opportunity to come to the AGM. My question is basically about expanding the Company over the coming years and I see from the Company Report that the Company has integrated G E Heelis recently. On the assumption that the country comes out of the current recession, what is the Board’s strategy for growing our Company and hence enhancing shareholder returns?
RG: Our policy, which is regularly under review is to expand and enhance our primary trading purpose of supplying land and property related services to the public. We have plans at this stage and to that end we are looking to expand first of all our successful Lettings Department. We also have, in their very early stages, plans to expand geographically in the county. As I say, these plans for expansion are in their early stages and I would hope to give further information on the new front in my interim report at the half year. Otherwise, again expanding and enhancing our primary trading purpose, we have recently developed links with a planning adviser in the West of the County to expand our planning services in a wider area and we are now providing in house HIP’s services, previously we farmed these out and we now do it in house, and Energy Reports both domestic and commercial.
MWV: Does the review of ‘Furniture Sales’ as referred to the Annual Report include any provision for such as a ‘one-stop-shop’ for house clearance?
RG: We actually already provide this service, it is an example of how the profit centres work together, of course the Furniture Sales and the house clearance side work in with the Estate Agency and provide, we hope, a fairly comprehensive service there.
RG: Your next comment, rather than question.
MWV: These are comments, yes. Again, like my fellow shareholders I see other plc reports and accounts. It’s a question of what I would like to see in future reports and accounts. I see a lot of historical information, for example dividend and so on, very often bar charts giving historical information, I don’t necessarily want you to produce glossy brochures at great cost, merely something like a grid giving this kind of information for historical reasons so that I can see at a glance how the company is performing.
RG: Thank you for that thought. I think this is again to a degree personal information that most shareholders like to work out themselves, but we’ll consider that.
MWV: My next question has already been alluded to (Written question: There is no statement on when the proposed dividend will be paid). Again I see statements in annual reports saying when the proposed dividend will be paid and when the cut off date is for shareholders. Would you consider including that in future reports?
RG: Again, it’s not information we have to give but yes we will.
MWV: My last question, if I may. It’s about obtaining valuation of the shares, again annual reports or something of the sort tells shareholders how they can obtain the value of their shareholding?
RG: We have to, if you like, divorce ourselves when dealing with out own shares and I am pleased to say that Mr Ian Bolton (IB) is here. He deals with the Company share sales and purchases through his company James Sharp and you may like to direct your question to him for a fuller reply.
IB: Quite simply we match buyers and sellers together, the shares have averaged £12.50 over the last twelve months and we have sold about 3500 shares.
RG: Yes, as a result of your question Mr Veitch I think we will endeavour, probably in the Chairman’s statement each year to link that information in, in so far as we can to give perhaps some idea of what the share prices were over the year.
RG: Thanked Mr Veitch
RG: asked Mr Cartmell (GC) to read out all his questions together and then asked his fellow Director, Mrs Brown to reply to the questions as a whole.
GC: My questions are as follows: You will recall at the 2008 AGM you advised that the annual rental value of the properties occupied for the trading activities by the company was between £50,000 and £55,000. Taking this into account and using a similar rate of return as obtained/indicated on the investments properties over the last two years this gives a capital value for these properties of approximately £1 million is this a fair value?
If this capital value is not a ‘fair’ value what percentage rate of return should be applied to the notional rent to arrive at a ‘fair’ value?
Allowing for the annual rental value you indicated in respect of the properties occupied by the company the financial statements indicate that trading activities over the last five years have shown losses totalling some £300,000. Please confirm whether or not this order of magnitude of the losses over the period is correct? If not correct please advise the quantum of the trading activities over the period.
In light of these trading results (and even if my understanding of the trading results is incorrect) and bearing in mind that we were advised some five years ago that ‘the company was like a large tanker taking time to turn around but the benefits would be forthcoming’ what is the prime objective of the board in the medium term and what specific action(s) is the board implementing to achieve this objective?
JB: Firstly, I think what you are alluding to here is the winding up of the trading operations and moving purely to an investment company JB pointed out the costs involved in such a move: long term, loyal staff – massive redundancy bill which would immediately cut into capital assets; office equipment etc shown as assets at present would be w/o as they would be surplus to requirements; hidden costs in leases, contracts with service providers etc. Timing is all wrong – only people looking to buy companies at present are 'bargain hunters'.
Board should be looking to provide sustained performance, reasonable growth and low risk approach to future investment.
GC: misunderstood meaning behind questions – he had no intention of implying selling off trading company. Still not answered main points and he would be grateful if the first two questions could be answered.
Suggested that he would welcome the opportunity to discuss with the Board outside the meeting what his thoughts were on these matters and Board agreed to do that.
RG: That concludes the written questions - asked for any further questions from floor.
Mr J Johnston: Asked about selling our own shares.
RG: Not possible as risk of Directors being sued. Other companies are continuing to trade in their own shares but this will probably change with time. Details of share prices, company dealing with them etc to be available to shareholders.
GC: As accounts were late being produced due to flooding in the west of county, I have a couple of little points which I would like to raise, they relate primarily to the Finance Company. Is it right to say that the Finance Company lost between £30-40K?
RG: Yes, we are pursuing a policy of writing off losses and eventually winding company up.
GC: could half yearly report show head office and net rental.
RG: yes
RG: thanked meeting for generally constructive questions.
Ordinary Business
Res 1: To receive the Company’s annual accounts for the financial year ended 31 August 2009 together with the last Directors’ report and auditors’ report on those accounts.
RG Proposed.
RCM seconded.
Show of hands – Carried
Res 2: To declare a dividend for the year ended 31 August 2009 and the Chairman formally proposed that a dividend of 10p per share should be declared. He asked for amendments which can only be lower not higher.
RG proposed.
RCM seconded.
Show of hands – Carried
Res 3: To fix the non-executive Directors’ fees.
GC asked exactly what the vote was for.
RG explained it was to give power to the board to fix the fees – not for the actual level of fees.
Mr I M Bolton proposed.
Mr M W Veitch seconded.
Show of hands – Carried
Res 4: To reappoint as a Director Mr W F Mossop who retires by rotation.
Mr J P Allen proposed.
Mr J D Kay seconded.
Show of hands – Carried
Res 5: To reappoint robinson+co as auditors to hold office from the conclusion of the meeting to the conclusion of the next meeting at which the accounts are laid before the Company at a remuneration to be determined by the Directors.
Mr S E Veitch proposed.
Mr J H Johnston seconded.
Show of hands – Carried
Special Business:
Res 6: The Directors be and they are generally and unconditionally authorised for the purposes of section 551 of the Companies Act 2006 (the “Act”) to exercise all the powers of the Company to allot shares up to an aggregate nominal amount of £500,000 provided that this authority is for a period expiring five years from the date of this resolution but the Company may before such expiry make an offer or agreement which would or might require shares to be allotted after such expiry and the directors may allot shares in pursuance of such offer or agreement notwithstanding that the authority conferred by this resolution has expired.
Mr I M Bolton proposed
Mr S E Veitch seconded.
Show of hands – Carried
Formal part of meeting concluded.
Chairman drew attention to changes to Company’s Memorandum & Articles of Association made necessary by the Companies Act 2006. The Company will be taking legal advice on all aspects of this and anyone with views or suggestions is asked to submit them in writing or email to the Managing Director by 28/02/10.
RG: Formally closed meeting.
Mr J D Kay. Mr Chairman, before we actually adjourn, as a shareholder could I congratulate the Board and thank the Board for providing us with improved results over the last twelve months. We are all fully aware of the recession that has lasted twelve or eighteen months and particularly for PF&K operating under the property banner it must have been even more difficult and so to turn the Company round as you have and all the effort you put in I and I am sure all shareholders do thank you.
RG. I declare the meeting closed. 12 noon
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