18th Nov 2020 12:58
(Alliance News) - Agricultural supplies group Wynnstay Group PLC reported on Wednesday that overall trading since June has been stronger than anticipated, particularly in September and October.
As a result of this, Wynnstay expects that its underlying pre-tax profit for 2020 will be significantly ahead of current market forecasts, noting that the 2019 figure was GBP8 million.
Wynnstay experienced some anticipated difficulties in arable activities due to poor planting conditions in autumn 2019 that resulted in a historically low yield for the 2020 UK cereal harvest.
Wheat volumes declined by an estimated 40% from the previous year, which limited the volumes available for Wynnstay's grain trading operation.
However, Wynnstay saw better-than-expected feed sales in September and October. Sales from the Specialist Agricultural Merchanting depot network also performed well, helped by a stronger red meat sector.
Wynnstay has closed the Youngs Animal Feeds distribution centre in Huyton, Merseyside, a specialist agricultural merchanting depot in Salisbury, Wiltshire, and the seed plant in Selby, Yorkshire following its lease expiry.
Additionally, Andrew Evans will step down as agricultural director, effective December 1, after the role was axed, and will take on the group operations and feed director job.
Wynnstay said that, generally, the outlook for agriculture and farm commodities in the UK remains positive despite uncertainties around Brexit.
The company added that it is well placed to take advantage of opportunities going forward.
Shares in Wynnstay were up 11% at 344.21 pence in London on Wednesday.
By Zoe Wickens; [email protected]
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