Wynnstay Group reveals robust performance
Agricultural supply and retail specialist Wynnstay Group achieved a ‘robust’ performance, despite ‘challenging’ trading conditions.
Although headline profits increased for the year, pre-tax profits fell slightly to £8.4m as a result of costs associated with the recent acquisition of Agricentre.
Group revenue dropped to £377.38m (against £413.56m for 2014) in the face of low commodity prices.
Wynnstay said the results showed a resilient performance, adding growth in the volume of sales combined with better efficiency had helped maintain profitability.
Ken Greetham, Chief Executive of Wynnstay, commented: “Wynnstay has delivered a pleasing performance in a trading environment that has been impacted by continuing low output prices for farmers.
“These robust results were supported by recent acquisitions as well as increased volumes and efficiency gains in some sectors. We continued to expand our business during the year, including the acquisition of Agricentre at the year end, which brings eight new outlets and extends the Group’s presence into a major new geographic region.
“Farmgate prices remain a challenge for the industry, with prices still below the realistic cost of production for many farmers. With the consequent impact on farm sentiment, it is prudent to take a more cautious view on trading for the year ahead.
“However the longer term macroeconomic growth drivers for the sector remain compelling and we intend to continue to build on the Group’s solid foundations, developing Wynnstay’s presence both organically and through further acquisitions. I look forward to providing an update on trading at Wynnstay’s AGM in March.”
Wynnstay manufactures and supplies agricultural inputs, including animal nutrition products, seeds, fertiliser and agro-chemicals, to livestock and arable farmers. Its activities also include the supply of raw materials for feed ingredients to farmers and other feed manufacturers, and the provision of grain trading services for farmers.
The agricultural division saw sales of £270.05m, with operating profit up nine per cent to £4.13m and year-on-year volume improvement in most product categories.
The Group’s specialist retailing activities include: Wynnstay Stores, a network of country stores catering for farmers and the wider rural community; Youngs Animal Feeds, a manufacturer and distributor of equine products; Just for Pets, a chain of pet products stores operating predominantly across the West Midlands.
Revenue for the retail division was £107.19m, with operating profit up four per cent to £5.08m thanks to continued expansion, including the addition of Agricentre which establishes the Group’s presence in the West Country for the first time.
Wynnstay Group is headquartered in Llansantffraid, Mid Wales, but has sites in Oswestry and Shrewsbury, in Shropshire, as well as its retail stores.