Wynnstay plans to invest despite Brexit uncertainty

Chief executive Ken Greetham said he has faith in the agricultural industry and doesn't believe the impacts of leaving the EU will be as bad as a lot of people fear.

It comes after the firm revealed a return to strong profit growth at its core business.

Significantly improved trading for its agricultural operations, including a rise in farm output prices – including milk – saw Wynnstay's turnover from continuing operations rise 10.5 per cent to £390.72m.

And pre-tax profits from continuing operation at the Llansantffraid and Shrewsbury-based group rose 9.2 per cent to £7.97m.

But it did take a heavy hit from the collapse of its pet products business Just for Pets last year.

The pet business was put into administration in October and associated costs of £6.59 million saw the group report a loss after tax of £280,000, compared to 2016's £5.8m profit.

Mr Greetham believes the farming industry is currently more stable than it has been in recent years and said farmers are also continuing to invest in their businesses.

"It is pleasing to see an increase in milk prices and I don't believe it is 'edge of cliff' like it was previously.

"The world market is more stable, everything looks more stable at the moment.

"We have seen an increase in sales in sheep handling equipment and fencing. There was also a massive increase in tractor registrations last year compared with 2016.

"We are obviously aware of the affects of the Brexit debate, even though no one can be certain about what the exact impacts of it will be.

"There are positive signs. I am not saying it is going to be good but I don't think it will be as bad as people fear. Brexit will certainly change the face of agricultural funding.

"I think most farmers think it shouldn't be too bad but there are obviously some nervous ones. The good thing is we have time to react to it.

"I have great faith in agriculture so we will continue to look at ways to expand the business."

Mr Greetham said they have got planning permission to build a new warehouse at its site in Astley near Shrewsbury.

"Across the sector we will continue to invest. We are always looking to refurbish our retail stores and investing in the feed element.

"We usually invest about £4 million a year in capital expenditure, stores, transport etc," he added.