14th Nov 2022 17:29
(Alliance News) - Wynnstay Group PLC said on Monday that it expects annual results to be ahead of market forecasts.
The agriculture supplies group said decent trading conditions in September continued until the end of its financial year to October 31.
"The beneficial trading conditions described in the September statement continued through to the financial year-end, further benefiting arable performance with additional income across grain, seed and fertiliser categories," Wynnstay said.
Wynnstay said it would see an additional non-cash profit of GBP500,000 from grain trading, following a spike in London wheat futures caused by the Russian government's withdrawal from its grain export agreement with Ukraine on October 29.
However, the Russian government reversed its decision on November 2 after the end of Wynnstay's financial year, causing London wheat futures prices to decrease by approximately the amount it had initially increased.
This reversal will effectively nullify the reported additional non-cash profit, but will be accounted for in the new financial year.
Joint venture businesses Bibby Agriculture Ltd and Wyro Developments Ltd both exceeded initial financial performance expectations, with contributions from these activities set to be higher than budgeted.
Wynnstay added it believes it is prudent to keep expectations for the new financial year unchanged, amid inflationary pressures and an uncertain macroeconomic background.
Shares in Wynnstay Group closed flat at 630 pence in London on Monday afternoon.
By Greg Rosenvinge; [email protected]
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