18th Mar 2014 11:09
LONDON (Alliance News) - Wynnstay Group PLC Tuesday warned that it has had a challenging start to the year, and expects first-half trading to be behind the previous year due to poor harvests, but said that market conditions for the second-half of the year are encouraging.
In an annual general meeting statement to shareholders, the agricultural products company said that two successive poor harvests have reduced the grain crop and the "exceptionally mild winter" has shortened the housing period for livestock, which has reduced feed demand.
"While the remainder of March and April, both key agricultural months, are still to come, the first half results are currently expected to be behind the record level of the prior year," the company said.
However the agricultural and retail group gave a positive outlook for the remainder of the financial year, and said that current market conditions are encouraging for the second-half of the year.
"Demand for spring fertiliser has increased and is likely to remain strong, partly as a result of the large acreage of winter cereals, which should also result in a good grain harvest this autumn," it said.
Wynnstay said it is also well-placed in the cereal and herbage seed sector and expects a more normalised demand for cereal seed, with strongest sales in the autumn period, in contrast to the last financial year.
The company said its specialist retailing division continues to make progress, with an increase in the number of Country Stores, despite the mild winter hitting the mix of sales. It said the initial integration of the seven new outlets in South West Wales is on track, and will soon focus on upgrading and enhancing the product offering.
Its pet products chain, Just for Pets, saw an encouraging start to the year, and it hopes to open new retail sites during the year, said the group.
"While the current financial year has experienced a more challenging start, the Group remains well positioned to pursue its growth plans," the company said.
Shares in Wynnstay were trading 4.6% lower at 645.75 pence per share Tuesday morning.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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