Wynnstay Group Plc
(“Wynnstay” or “the Group” or “the Company”)
Agricultural supplies and services group
Interim Results for the six months ended 30 April 2025
Encouraging first half
Project Genesis firmly under way and Group on track for full year forecasts
KEY POINTS
| 6 months to 30 April 2025 (unaudited) | 6 months to 30 April 2024 (unaudited) | |
| Revenue | £304.9m | £328.5m |
| Gross profit | £42.0m | £39.2m |
| Adjusted operating profit1 | £5.2m | £3.7m |
| Adjusted profit before taxation2 (“PBT”) | £5.4m | £3.8m |
| Adjusted earnings per share3 | 18.1p | 12.6p |
| Net cash4 | £10.3m | £18.5m |
| Interim dividend per share | 5.7p | 5.6p |
| Statutory results | ||
| Operating profit | £5.5m | £4.4m |
| Profit before taxation | £5.5m | £4.4m |
| Earnings per share | 18.40p | 14.31p |
| Net (debt) / cash – full IFRS 16 | (£6.3m) | £5.3m |
2Adjusted profit before taxation excludes amortisation of acquired intangibles, share-based payment expenses, gains or losses on mark to market of derivatives, non-recurring items and the share of tax incurred by joint ventures.
3 Adjusted earnings per share takes into account the tax effect of adjusting items.
4Net (debt) / cash excluding IFRS 16 leases
Financial
- Profitability improved, reflecting management initiatives, effective margin management and early benefits from Project Genesis.
- Revenue decreased to £304.9m (2024: £328.5m) due to reduced feed and grain trading activity, and lower commodity prices.
- Gross profit up 7% to £42.0m (2024: £39.2m).
- Adjusted PBT up 41% to £5.4m (2024: £3.8m), reflecting cost discipline and better unit margins.
- Balance sheet remains strong, with net cash (pre-IFRS 16) of £10.3m (2024: £18.5m) at 30 April, which is typically the highest point in the Group’s annual working capital requirement and hence the lowest point in the annual cash cycle.
- Increased interim dividend declared of 5.7p per share (2024: 5.6p), in line with progressive policy.
Operational
- Feed and Grain
- Adjusted PBT up to £0.9m (2024: £0.4m); revenue lower at £160.5m (2024: £190.3m).
- Manufactured feed volumes decreased by 6%, mainly reflecting lower poultry volumes.
- Grain trading volumes down 13%, reflecting poor 2024 harvest (down 21%) and lower market prices.
- Exit of Twyford Mill completed, delivering expected cost savings; its poultry feed production has been outsourced.
- Unit margins improved through targeted pricing actions.
- Arable:
- Adjusted PBT up to £1.4m (2024: £0.4m), revenue up to £71.4m (2024: £69.1m).
- Fertiliser volumes up 6% and seed sales improved 5%, helped by favourable spring conditions.
- Gross profit margin increased by 170 bps.
- New fertiliser blending plant opened in Avonmouth, Bristol, extending Group’s geographic footprint in the South West and improving efficiencies.
- Stores
- Adjusted PBT up to £3.1m (2024: £3.0m); revenue up to £73.0m (2024: £69.0m).
- Activity levels – footfall and transaction volumes – in line with prior period.
- Proactive pricing actions partially offset inflationary pressures.
- Project Genesis launched and on track – a three-year programme to establish a more efficient operating model to drive higher margins, profits and cash generation and to support the wider growth plans. Significant management and operational changes made, as planned.
Outlook
- Farmgate prices remain firm across most sectors, supporting farmer sentiment despite ongoing uncertainties around governmental financial support mechanisms.
- Trading in H2 to date has been in line with management expectations and the Group remains on track to deliver a stronger full-year performance compared to FY24, in line with market expectations.
Alk Brand, Chief Executive Officer of Wynnstay Group Plc, commented:
“The Group has delivered a strong recovery in the first half, with the improved profitability reflecting the benefits of our operational initiatives. The new management team is now in place and is delivering improvements, supported by a clear plan and strong leadership focus. Project Genesis is progressing well and, together with ongoing investments, supports our ambitions to create a stronger, fitter business, which provides our customers with the highest service levels and our shareholders with improved returns. Current trading is encouraging, and the Group remains well-positioned to achieve market expectations for the full year.”
Steve Ellwood, Chairman of Wynnstay Group Plc, commented:
“We now have a refreshed executive management team in place, which is focused on integration, execution, and driving shareholder returns. Project Genesis is firmly established and progressing well, and we expect to complete the development of our Group growth strategy in the second half. It will complement and build on the foundations already laid. The Group has a strong balance sheet and solid financial platform, and we are investing in initiatives that will benefit our customers and drive earnings per share and long-term value for shareholders.”