30th Nov 2023 11:00
(Alliance News) - Wynnstay Group PLC on Thursday said poor weather and inflationary pressures disrupted trading, and that it expects full-year results below market expectations.
Shares in Wynnstay Group were down 14% at 371.05 pence on Thursday morning in London.
The Powys, Wales-based agricultural and specialist merchanting firm said that during the second half of the year that ends on October 31, the trading environment substantially worsened.
Throughout the period lower farm-gate prices adversely affected farmer spending patterns. The "seasonally critical" fourth quarter, meanwhile, suffered due to "abnormally wet weather".
Wynnstay said its Agriculture Division was hurt by lower sales in winter seed products, as post-farming activities were disrupted by heavy rains. Demand for fertiliser and feed was also down. The Specialist Merchanting division, meanwhile, was affected by lower volumes of hardware products and bagged feed sales, as well as by inflationary pressures.
Wynnstay said that as a result, it expects its results for the latest financial year to be below current market expectations, which it did not outline.
On the other hand, Wynnstay Group said the Agriculture Division's GrainLink business "delivered a record performance" thanks to a "good-sized" harvest. It also expects results from its three joint venture businesses to slightly surpass those from the previous year.
Wynnstay Group expects farmer sentiment to "remain cautious in the short-term". However, it anticipates better results for the current financial year, thanks to its "strong market position and balanced business model".
By Emma Curzon, Alliance News reporter
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