Farming firm Wynnstay healthy despite market collapse

The company suffered a triple-pronged attack on its income from price deflation, falling output prices and a mild winter last year affecting demand for products.

But it still saw its turnover edge higher to £413.6 million, from £413.5 million last year, while pre- tax profits also improved slightly from £8.46 million to £8.6 million in the full year to October 31.

The company, which manufactures feed and processes seeds, fertiliser and agro-chemicals, employs hundreds of people at its headquarters at Llansantffraid, between Oswestry and Welshpool, and at its major seed processing plant at Shrewsbury.

Finance director Paul Roberts said: "The flat headline figure does disguise some big underlying changes. That £413 million sales figure has been struck after about £37 million of price deflation, particularly across grain and feed.

"It's been balanced by new contributions from the big acquisition we made of Carmarthen & Pumsaint Farmers last year."

Shares in Wynnstay rose by around 3.5 per cent in the aftermath of the results, adding 19p.

The growth was supported in particular by the expansion of the group's retail division. While its agriculture business's revenue fell by 4.4 per cent to £308.7 million, specialist retail grew by 16 per cent to £104.62 million.

The volume of feed sold in the year fell by around two per cent, the company added, which was in part affected by the labours of the dairy market, where the fall in milk prices led to a reduction in demand from farmers.

Chief executive Ken Greetham said: "The first few pennies of that fall in price are world market related, and after that the pressure of supply and demand have really taken hold."

However, he said there was hope for farmers, adding: "The broad business base has provided a buffer against the challenges arising from the varied trading conditions during the year."