Wynnstay Group reveals year-end results in line with expectation
Agricultural supply and retail specialist the Wynnstay Group has said its latest year-end results, announced today (Jan 25), are in line with expectation and reflect the pressures facing farmers.
Figures for the year to end October 2016 showed that the AIM listed firm remained strong despite reduced profitability.
Deflation impacted on the overall group revenue, which was down to £368.14m from £377.38m in 2015.
Profit before tax was £7.29m (2015: £8.34m) with earnings per share at 30.01p (2015: 34.66p).
Net cash increased to £4.28m (2015: £2.14m), helped by strong cash generation, with net assets up to £86.95m (2015: £82.86m). This gives a proposed final dividend of 8p per share, taking the total for the year to 12p (2015: 11.10p) – an increase of 8.1 per cent.
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 revenue of £249.74m, with an operating profit of £3.01m.
The Group’s specialist retailing activities include: Wynnstay Country Stores and Agricentres, a network of 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 £118.28m, with operating profit of £4.54m following the completion of its acquisition of the Agricentre chain, which has strengthened its geographic reach.
Indications in the current financial year are that trading is in line with management expectations with the agricultural environment showing signs of recovery with improving output prices for farmers.
Ken Greetham, Chief Executive of Wynnstay, said: “Our results are in line with market expectations and reflect the tough trading environment, which stemmed from an imbalance in world markets and has led to low output prices for farmers, most apparent in the dairy sector.
“Despite the backdrop, we continued to invest significantly across the Group to support efficiencies and future growth, and have further extended our trading reach in the south of England through our Wynnstay Agricentre outlets.
“Over recent months, there has been a recovery in output prices for farmers, mainly as a result of the devaluation of sterling, and the new financial year has started in line with management expectations. We remain optimistic of further improvement and are focused on continuing to develop Wynnstay’s market presence. The Group’s breadth of products and balanced spread of activities remains a key strength.”
Wynnstay Group has its headquarters in Llansantffraid, Mid Wales, but has sites in Shropshire, Carmarthen and Yorkshire as well as its retail stores across the country.