Financial
· Significantly improved trading backdrop benefited agricultural operations
– upturn in farm output prices (including for milk) boosted farmer sentiment
– however, overall results were impacted by pet products business, Just for Pets Limited
· Revenue from continuing operations rose by 10.5% to £390.72m (2016 restated: £353.73m)
– partly reflecting a reversal of commodity price deflation
· Underlying* pre-tax profit from continuing operations up 9.2% to £7.97m (2016 restated: £7.30m)
Reported profit before tax, including the impact of Just for Pets Limited, of £1.15m (2016: £7.29m)
· Basic earnings per share from continuing operations up 8.7% to 32.29p (2016 restated: 29.71p)
· Net cash up to £4.51m at year end (2016: £4.28m)
· Net assets at 31 October 2017 stood at £85.39m (2016: £86.95m)
· Proposed increased final dividend of 8.40p (2016: 8.00p), taking total for the year to 12.60p (2016: 12.00p), a rise of 5%
· New financial year has started in line with management expectations
Operational
· Agricultural Division – revenue of £280.87m, operating profit up 11% to £3.34m
– recovery in trading conditions for both livestock and arable farmers
– higher volumes across most categories, including dairy feed and fertiliser
– investment plans in place for 2018 to increase capacity in feeds and seeds
· Specialist Retail Division – revenue from continuing operations of £109.73m, operating profit up 6.0% to £4.74m
– revenues up across the majority of stores as farmer sentiment recovered
– refurbishment programme continues across retail outlets
· Just for Pets Limited (formerly part of the Specialist Retail Division) was regrettably placed into administration on 10 October 2017
· Acquisition of fertiliser blending facility at Montrose in November 2017, expanding the Group's geographic reach in Scotland
· Trading conditions are firmer than this time last year; Company is well-placed to develop further
*Underlying pre-tax profit includes Group's share of pre-tax profit from joint ventures and associate investments but excludes the exceptional item and share-based payments. A reconciliation is shown in note 15.
Ken Greetham, Chief Executive of Wynnstay, commented:
“Our core agricultural business delivered a significantly improved performance year-on-year, reflecting better trading conditions for our farmer customers, with milk and other farm output prices recovering from the depressed levels of the last two years. The recovery in prices over 2017 drove a greater sense of optimism across the agricultural sector.
“The Group's results as a whole were impacted by Just for Pets Limited, which was very regrettably placed into administration in early October. However, this decisive action helped to minimise the potential adverse effect on both creditors and employees, preserving most jobs.
“The agricultural trading backdrop is stronger than this time last year and the new financial year has started in line with management expectations. We continue to invest in the Group's infrastructure, focusing on manufacturing and logistics, and believe that the business remains well-placed to develop and grow. While Brexit creates some uncertainties, we remain confident of the Group's market positioning.
“2018 is our centenary year and we look forward to marking it with a number of events and initiatives for all staff, customers and other stakeholders.”