26th Jun 2019 11:48
(Alliance News) - Wynnstay Group PLC on Wednesday reported 19% revenue growth in the first half of its current financial year, but said profit took a hit from increased expenses.
The agricultural products supplier said pretax profit in the six months to the end of April was GBP4.1 million, down 16% compared to GBP4.9 million reported a year prior, whilst revenue jumped to GBP260.6 million from GBP218.5 million, reflecting commodity price inflation and acquisitions.
Meanwhile, manufacturing, distribution and selling costs increased in the first half to GBP24.4 million from GBP21.0 million last year, while administrative costs were broadly flat at GBP3.5 million.
"The combination of abnormally warm weather, which reduced feed demand during traditionally important months, and more cautious spending patterns by farmers in reaction to a softening in farmgate prices and Brexit uncertainties, created challenges for the agricultural supplies sector. Wynnstay's results reflect this," explained Chief Executive Gareth Davies.
Wynnstay declared an interim dividend of 4.60 pence a share, up 4.3% from 4.41p paid the year before.
Looking ahead, Davies said: "Wynnstay's long-term prospects within the industry remain strong, and at this stage of the financial year, the board's expectations for the full year outcome remain unchanged."
Wynnstay shares were trading 1.6% higher on Wednesday in London at 325.00 pence each.
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