Wynnstay Group Plc hails robust interim results

Agricultural supplier and retailer Wynnstay Group Plc has revealed interim results which it says are robust and in line with management expectations.

A balanced business model, serving a wide swathe of the rural sector, has ensured a predictable performance even in the face of commodity price deflation.

Reported revenues for the half year are £193.24m (£200.56 in 2015), resulting in a pre-tax profit for the period of £4.08m (£4.82m, 2015) and earnings per share of 17.22p.

The group’s net debt has continued to reduce to £3.90m, against £8.09m at the same point in 2015.

An interim dividend of 4.00p has been declared – an increase of 8.1 per cent over last year’s payout of 3.70p per share – in line with the board’s progressive dividend policy and its view of the cyclical nature of sector downturns.

Chief executive of Wynnstay, Ken Greetham, said: “We are pleased to deliver robust results, in line with management expectations, despite a particularly challenging backdrop of poor output prices for farmers, which has affected the entire industry. These robust results have been underpinned by the group’s broad spread of activities across both the arable and feed sectors.

“Along with our strong balance sheet, the breadth of Wynnstay’s model leaves us well-positioned to take advantage of opportunities for growth and we continue to invest in the infrastructure of the business.

“While the macroeconomics of the market suggest a return to more acceptable pricing, which will bring renewed vigour to the sector, the recovery in output prices for farmers is difficult to predict. Notwithstanding this and the emerging implications of the EU referendum result, we believe that Wynnstay remains positioned to achieve its targets for the financial year and continue to view long term prospects positively.”