23rd Jan 2019 10:09
LONDON (Alliance News) - Wynnstay Group PLC on Wednesday said profit grew in its most recently ended financial year, boosted by acquisitions and unusually favourable summer weather.
The agricultural products supplier said revenue in the year to the end of October 2018 rose 18% to GBP462.7 million from GBP390.7 million reported the year before, pushing pretax profit up by 24% to GBP9.5 million from GBP7.7 million.
"These strong results reflected the continued recovery in farmer spending with the improvement in farmgate price, also the unusually long dry summer, which boosted feed, fertiliser and seed sales in the second half of the year," said Wynnstay Chief Executive Gareth Davies.
Sales in the Agriculture division rose by 19% to GBP334.3 million, with the increase reflecting higher average unit values for most feed, seed and grain products and stronger volumes.
Meanwhile, revenue from the Specialist Agricultural Merchanting division increased by 17% to GBP128.3 million, with acquisitions contributing GBP7.8 million to this rise.
The company has made a number of acquisitions of agricultural outlets in the year, which have expanded its trading reach and farming customer base, especially in the South West.
Wynnstay declared a final dividend of 8.95 pence a share, up from 8.40p paid the year before. This takes the total payout for the year to 13.36p, up 6.0% year-on-year.
"While Brexit uncertainties remain, we are confident that British agriculture has positive long-term prospects, underpinned by macro-economic drivers as well as the UK's relative lack of food self-sufficiency," added Davies.
Wynnstay said it intends to provide a trading update in late March.
The stock was trading 1.7% higher on Wednesday at 427.00p a share.
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