CONTINENTAL FARMERS Group (CFG), the Isle of Man-based diversified agricultural producer which is listed on the Irish Stock Exchange’s junior market, reported profit before tax of €3.1 million in its maiden results, a decline of 2.5 per cent on 2010.

The group has farming operations in western Ukraine and northern Poland and is 24 per cent owned by Origin Enterprises, the Dublin-listed agri-nutrition and food company.

The year to the end of December 2011 was one of “strong growth and development”, according to the company. Group revenues increased by 20 per cent to € 25 million, up from € 21.1 million in 2010. However, cost of sales also increased – up by 27.9 per cent to €15.9 million in 2011, due in part to poor potato pricing in Ukraine.

Profit after tax increased from €2.6 million to €3.1 million and earnings before interest, tax, depreciation and amortisation, was up by 5 per cent at €6.7 million.

The group now owns approximately 1,600 hectares of freehold land in Poland and leases approximately 1,100 hectares. In western Ukraine, CFG leases more than 25,000 hectares.

Chief executive Mark Laird said the results reflect “the positive backdrop to primary food production and the delivery of excellent operational progress which has underpinned a major crop expansion by the group in the period”.

Last summer, CFG listed on Dublin’s ESM and London’s Alternative Investment Market and raised € 14.7 million net of costs to invest in land-bank expansion for crops, machinery and storage facilities.

Davy Stockbrokers said that the results were “in line with expectations despite a weak potato market in Ukraine”.

Looking ahead, Mr Laird said that CFG is on track to have more than 24,000 hectares under crop in western Ukraine in 2012. He added that the group will continue to focus on the management of climatic, cropping and pricing risk.

“CFG is well positioned to respond to new opportunities as they arise,” he said.