Wynnstay boosted by recovery in farmgate prices across the agricultural sector
Agricultural group Wynnstay has seen a rise in revenue and profits as it delivered its results for the first half of the year.
The firm, which has sites in Shrewsbury and Llansantffraid, said the encouraging results reflect a continuing recovery in farmgate prices across the agricultural sector – and that farmer confidence is returning.
The group saw growth across both its agricultural and retail divisions, and acquired eight stores from the administrators of Countrywide Farmers at the end of April, including the one in Bridgnorth.
Revenue from continuing operations rose by 10.3 per cent to £218.5 million.
Operating profit was up by 15.9 per cent to £5 million, while pre-tax profit also increased by 15.7 per cent to £4.9 million.
Wynnstay said it remains well-positioned to meet current market expectations for the full year.
In its agricultural division, revenue rose 9.9 per cent to £160.1 million, while operating profit was up by 33 per cent to £2 million.
The strongest recovery was in feeds, driven by both farmers returning to more typical feeding patterns and the protracted winter.
In its specialist retail division, revenue was up 11.4 per cent to £58.2 million, while operating profit increased by 6.2 per cent to £3.1 million.
Wynnstay Stores benefited from the improved trading backdrop, with like-for-like sales up eight per cent, excluding inflation.
Ken Greetham, chief executive of Wynnstay, is to retire from the group in early July, with Gareth Davies appointed to succeed him.
Mr Greetham said: "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.
"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.
"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 strategic acquisition together with two separate store purchases strengthen our presence in a number of counties, especially in the south west of England, where Wynnstay is currently under-represented.
"Trading remains in line with overall budgets and the group is well-positioned to meet current market expectations for the full year."
