Frontier Agricultural has reported a significant fall in profits, with operating profits halved during what the company described as one of the toughest years on record for British agriculture.
The tillage material supplier and grain distributor has released its annual report and financial results for the year ending June 26, 2025, highlighting the impact of extreme weather, regulatory changes and historically low grain prices on its overall business.
Group sales fell to £1.72bn from £1.76bn a year earlier, while operating profit fell to £14.2m from £37m in 2024. Profit after tax fell to £7.7m from £32.8m in the same period last year.
Frontier said long-term pressures on farm incomes and volatile markets are impacting production volumes and margins for both its crop inputs and grain marketing operations, reflecting the conditions facing producers across the crop sector.
Against this backdrop, the company has announced changes to the way it operates following the review of the UK’s arable supply chain in 2023 and 2024.
The report also commemorates Frontier’s 20th anniversary, during which time it has grown to become a major player in crop production and grain marketing.
The company said its responses to current market conditions include a shift to a customer-first operating model, increased use of digital tools, and changes aimed at simplifying the way farmers do business with the company.
During the year, Frontier invested £26.8m in capital projects, including its highest level of spending on technology to date.
The investment is aimed at supporting farmers through improved analysis, on-farm testing and product development, alongside measures to strengthen supply chain resilience, the company said.
Examples highlighted include efforts to support regenerative agriculture through commercial partnerships, new financial risk management tools for rapeseed growers, and the use of more than 13,000 replicate test plots to assess crop performance.
Frontier also noted progress on sustainability initiatives, including emissions reduction targets aligned with the Science Based Targets initiative, and continued engagement in broader industry discussions on farm income and environmental initiatives.
Commenting on the results, Group Managing Director Diana Overton said: “2025 was one of the most challenging years for our sector and business, following an equally challenging 2024.”
“Extreme weather conditions, regulatory changes and global market volatility had a negative impact on farm incomes and grain prices,” he said, adding that this was reflected in a significant decline in operating profit.
Overton said the numbers “validate the changes we must make to better meet the needs of our customers and continue to invest in our industry.”
He added: “Our transformation plan is on track, supported by record investment in technology and a refreshed operating model that puts our customers first.”
Frontier said the changes are aimed at stabilizing the business and supporting long-term growth, but trading conditions across the arable sector remain challenging with continued uncertainty around weather, regulations and market returns heading into next season.
