2nd Feb 2022 12:49
(Alliance News) - Wynnstay Group PLC on Wednesday reported record annual results for financial 2021, and trading for the current year in line with expectations.
The Powys, Wales-based agricultural supplier reported that revenue was up 16% year-on-year for the financial year ended October 31 to a record GBP500.4 million, from GBP431.4 million. This is up 2% on a two-year comparative of GBP490.6 million.
Pretax profit was up 57% to GBP11.0 million, from GBP7.0 million the previous year. It was also up 46% on GBP7.6 million in financial 2019. Underlying pre-tax profit for the year was at a new high of GBP11.4 million, up from 37% from GBP8.4 million in financial 2020.
Wynnstay said the strong performance was aided by external factors, such as a rise in farmer confidence as farmgate prices increased and uncertainty about Brexit and future government support for agriculture eased.
Its Agriculture division saw feed volumes increase 6.5% year-on-year, but margins were hit by increased costs. The second half of the year saw a return to more normal harvest tonnages and yields, which boosted grain trading in particular. This follows financial 2020's historic lows.
Its Specialist Agricultural Merchanting division performed "exceptionally" well, with strong sales across all categories boosting revenue by 10% and profit by 24% over the previous year. Wynnstay is continuing to develop its multi-channel sales approach, having launched a new online customer portal in its first half of the financial year.
Net cash on October 31 was GBP9.2 million, up 10% from GBP8.4 million at the end of the previous financial year.
Wynnstay said it will pay an increased final dividend of 10.50 pence per share on April 29, bringing the total dividend payment for the financial year to 15.50p per share.
Wynnstay's share price was up 4.1% to 606.00 pence each in London during Wednesday midday trading.
"Whilst there is a significant level of general economic uncertainty and rising costs, with farmgate prices remaining strong, prospects for the industry continue to be very encouraging," said Chair Steve Ellwood.
"In the near term, there are challenges for our business, with cost inflation, security of supply of overseas product and the coronavirus situation receiving our full attention. Nonetheless, we believe that Wynnstay is well-positioned to continue to its long-term growth and development."
Trading since October for the new financial year has started well, the company said.
By Elizabeth Winter; [email protected]
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