Wynnstay Group Plc - Half-year Results

WYNNSTAY GROUP PLC

 

Half Year Results

For the six months to 30 April 2019

 

Key Points

 

Financial

 

·   

Results reflect impact of weaker trading conditions

 

 

 

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abnormally warm winter reduced demand for feed and feed-related products

 

 

 

-     

more cautious farmer spending evident, affected by lower farmgate prices and Brexit uncertainty

 

 

·   

Revenue of £260.57m (2018: £218.53m), with the rise largely reflecting commodity price inflation

 

 

·   

Gross profit of £32.18m (2018: £29.41m)

 

 

·   

Profit before tax of £4.12m (2018: £4.91m)

 

 

·   

Basic earnings per share of 17.01p (2018: 20.14p)

 

 

·   

Net assets at 30 April 2019 up by 5.6% to £92.97m (2018: £88.05m)

 

 

·   

Interim dividend up 4.3% to 4.60p per share (2018: 4.41p)

 

 

Operational

 

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Agriculture Division - revenue of £195.05m (2018: £160.14m) and operating profit of £1.79m (2018: £2.05m)

 

 

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reduced demand for feed during traditionally peak winter months

 

 

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mild and drier weather conditions drove demand for fertiliser and grass seed

 

·   

Specialist Agricultural Merchanting Division - revenue of £65.48m (2018: £58.27m) and operating profit of £2.67m (2018: £3.10m)

 

 

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sales benefited from expanded depot network, reflecting prior year's acquisitions however the mild winter led to reduced bagged feed sales

 

 

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acquisition of Stanton Farm Supplies in April 2019 strengthens the Group's trading presence in South-West England

 

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Continued investment in manufacturing efficiencies and systems

 

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Continued focus on expanding routes to market and specialist on-farm advice services

 Gareth Davies, Chief Executive of Wynnstay, commented:

 

"The combination of abnormally warm weather, which reduced feed demand during traditionally important months, and more cautious spending patterns by farmers in reaction to a softening in farmgate prices and Brexit uncertainties, created challenges for the agricultural supplies sector. Wynnstay's results reflect this. We continued investing in our manufacturing and production plants, and have also expanded our farming customer base, strengthening our presence in the South West with an acquisition.

"Wynnstay's long-term prospects within the industry remain strong, and at this stage of the financial year, the Board's expectations for the full year outcome remain unchanged."