27th Jan 2016 09:36
LONDON (Alliance News) - Agricultural products company Wynnstay Group PLC on Wednesday said its pretax profit dipped slightly in the year to the end of October, though commodity price deflation over the course of the year meant its revenue fell sharply.
Pretax profit for the group was GBP8.4 million, compared to GBP8.5 million the year earlier, but its revenue fell to GBP377.4 million from GBP413.6 million.
Commodity price deflation dragged down unit values for most of the group's feed, grain and fertiliser products. Still, the group said it continued to expand over the course of the year, including in its retail business, which delivered a slight uptick in revenue and to which the group will allocate more investment in the current financial year.
Wynnstay said it would pay a final dividend of 7.4 pence per share, taking its total dividend up to 11.1p, up from 10.2p.
"Farmgate prices remain a challenge for the industry, with prices still below the realistic cost of production for many farmers. With the consequent impact on farm sentiment, it is prudent to take a more cautious view on trading for the year ahead," said Ken Greetham, Wynnstay's chief executive.
"However the longer term macroeconomic growth drivers for the sector remain compelling and we intend to continue to build on the group's solid foundations, developing Wynnstay's presence both organically and through further acquisitions," he added.
Shares in Wynnstay were down 3.4% to 505.00p on Wednesday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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