Wynnstay buoyed by strong trading performance
Agricultural supplies group Wynnstay said that trading had been strong across all core activities since June, with certain areas outperforming expectations.
The Llansantffraid-based group, which has sites and customers across the region, said its second-half performance had been supported by "strong farmgate prices across almost all categories", which continued to buoy farmer confidence and farm re-investment.
This has lead the firm to expect underlying group pre-tax profits to be "significantly ahead" of current market forecasts.
The AIM-listed company stated its specialist agricultural merchanting division experienced "strong demand" from farmer customers across all major categories, while its fertiliser blending activities was on the receiving end of certain one-off benefits.
Wynnstay also highlighted that inflationary and supply chain challenges being experienced across the wider economy had been managed, with the group so far managing to avoid any "significant disruption" to its business.
In a trading update for the financial year ended October 31 2021, the firm said: "Trading since June, when the group reported interim results, and in particular in the key trading month of October, has been strong across all core activities.
"Certain areas have outperformed the board’s expectations especially fertilizer blending activities, which experienced certain one-off benefits, and joint venture activities. As a result, the board now expects that underlying group pre-tax profit for financial year 2021 will be significantly ahead of current market forecasts.
"The second half performance has been supported by strong farmgate prices across almost all categories, which has continued to buoy farmer confidence and farm re-investment. After last year’s historically poor harvest, tonnages and yields have reverted to more normalised levels, benefiting the group’s arable activities in the important final quarter of the financial year, and grain prices remain strong.
"The board believes that the short and medium term outlook for agriculture and farm commodities in the UK remains positive. As the agricultural sector adapts to the Agricultural Act 2020 and a greater focus on environmental priorities, the group remains very well-positioned to support farmers and to increase its market share."
