Wynnstay has reported encouraging half year results, reflecting a return in farmers confidence and continued recovery in farmgate prices, says the business.
Revenues from continuing operations rose by 10.3% to £218.53m, with profit before tax from continuing operations increasing to £4.91m, and net assets on 30 April 2018 increasing to £88.05m.
“Wynnstay’s interim results are encouraging, with the group’s stronger performance reflecting the long-awaited upturn for the agricultural sector, which started to come through in 2017,” says Wynnstay chief executive Ken Greetham,
“The continuing improvement in farmgate prices has boosted farmer confidence, and demand across most product categories was higher year-on-year. Demand for feed also benefited from the prolonged winter,” he explains.
Results show the agricultural division has performed well, with operating profit up by 33% to £2.05m, with a strong recovery in feeds, driven by both farmers returning to a more typical feeding pattern, along with the protracted winter. Arable product orders were delayed by the late spring, but Mr Greetham comments that sales are now at normal levels.
The specialist retail division saw revenue up 11.4% to £58.27m and operating profit up by 6.2% to £3.10m.
“Wynnstay Stores benefited from the improved trading backdrop, with like-for-like sales up 8% excluding inflation,” explains Mr Greetham.
“We continue to invest in and develop the group in-line with our strategic plans, and, at the end of April, acquired eight stores from the administrators of Countrywide Farmers plc. This acquisition, together with two other store purchases, strengthens our presence in a number of counties, especially in the South West of England.
“Trading remains in line with overall budgets and the group is well-positioned to meet current market expectations for the full year.”