1st Feb 2023 11:07
(Alliance News) - Wynnstay Group PLC on Wednesday reported an annual profit surge, boosted by the impact on fertilizer prices of Russia's invasion of Ukraine in February of last year.
The agriculture supplies group said that in the financial year that ended October 31, pretax profit jumped to GBP21.1 million from GBP11.0 million in financial 2021. Revenue climbed 42% to GBP713.0 million from GBP500.4 million, though cost of sales increased by 44% to GBP622.2 million from GBP432.5 million.
Noting that the company had very significant one-off gains, Wynnstay said: "These one-off gains predominantly arose from the fertiliser processing activity at Glasson Grain Ltd, which experienced substantial stock gains following the sharp price increases in natural gas over 2022, a key ingredient in fertiliser production, particularly following the invasion of the Ukraine by Russia."
The company proposed a final dividend of 11.60 pence per share, up 10% from 10.50p a year prior. This puts the total annual dividend up to 17.00p, up 9.7% from 15.50p.
Looking ahead, Wynnstay said its November acquisition Tamar Milling Ltd, a manufacturer and supplier of blended feed products, for GBP1.4 million extended its geographic footprint, farmer customer base, and manufacturing capacity.
"Wynnstay remains well-positioned to attain its growth targets despite the economic headwinds," the company said.
Shares were 1.8% higher at 543.47 pence each in London on Wednesday morning.
By Tom Budszus, Alliance News reporter
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