Wynnstay Group sales boosted by commodity prices but Just For Pets struggle weighs on profits
Sales at agricultural group Wynnstay have been boosted by rising commodity prices – but profits were almost wiped out by a weak performance in its Just For Pets retail chain.
Pre-tax profits at the Llansantffraid and Shrewsbury-based group fell from £4.08 million to just £130,000, despite a 6.3 per cent rise in sales to £205.3 million in the six months to April 30.
It has led Wynnstay to "review its options" for the struggling business.
Chief executive Ken Greetham said: "The recovery in farmgate prices drove an improvement in demand for many agricultural inputs over the winter period.
“However, the trading loss at our Just for Pets chain has impacted the group’s overall results and, given this unit’s performance, we have recognised a non-cash goodwill and investment impairment charge and are restructuring the operations and reviewing our options for the business."
The picture for farmers was brighter in the results, with demand for dairy feed a particular bright spot amid rising milk prices, although volumes in April fell because the mild weather brought early spring grass.
Its other retail division, Wynnstay Stores, traded well, with a small increase in like-for-like sales as famers begin to reinvest in their businesses.
