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Wynnstay Group PLC - Powys, Wales-based agricultural supplies company - In the six months ended April 30, reports a pretax profit of £9.6 million, up 78% from £5.5 million the previous year. Revenue jumps to £335.7 million from £249.7 million, representing 34% growth year-on-year. Company says this represents a record half, ahead of management expectations.
Cites ‘firm market backdrop’ and significant one-off gains from fertiliser blending activities for the strong results. Adds: ‘The volume of fertiliser traded within Wynnstay Agriculture Supplies decreased by some 26% compared with the equivalent period last year, a reflection of elevated fertiliser prices.’
Commodity price inflation accounts for £80.0 million to the overall revenue increase, it estimates. Does not expect these exceptional gains to be repeated in its second half, however. Current trading is ‘positive’ thanks to firm farmgate prices, it adds.
‘These record interim results have been underpinned by a favourable sector backdrop, with strong farmgate prices across most sectors and positive farmer sentiment, as well as significant one-off gains in our fertiliser blending activity,’ says Chief Executive Gareth Davies, adding that the company is confident in achieving its full-year growth goals.
Declares an interim dividend of 5.40 pence, up 8.0% against the 5.0p dividend a year ago.
Commenting on the results, Shore Capital Markets Ltd analyst Akhil Patel says: ‘We continue to believe Wynnstay is very well-placed structurally and operationally to take advantage of current market dynamics, increased on-farm sentiment and the expected near-term increase in on-farm investment.’
Current stock price: 620.00 pence, down 3.0% on Tuesday in London
12-month change: up 35%
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