Wynnstay Group 'on track' to deliver financial targets

It comes after interim results for the first half of 2023 saw revenues up, though like-for-like profits fell as the business measured up against an exceptional first half year in 2022, which benefitted from significant one-off fertiliser stock price gains.

It meant that, for the first half of 2023, the fertiliser blending activities at Wynnstay subsidiary Glasson contended with a reversal of the abnormal spike in fertiliser raw material prices.

Despite the challenges, Wynnstay revenue was up 22 per cent at £409.14m for the six months ended April 30 while adjusted operating profit was £5.78m.

Underlying pre-tax profit was £5.25m with reported pre-tax profit of £5.07m.

During the period, the Llansantffraid-based group, which also has a base at Astley Park, Shrewsbury, integrated the acquisition of Humphrey and Tamar and, in quarter two, assumed the activities of Powys-based agricultural inputs supplier and trader S.G. Deakins.

It progressed with its investment programmes, including the Carmarthen feed mill project.

Gareth Davies, Chief Executive, said: “The Group performed well against softer trading conditions compared to last year and underlying performance is in line with our expectations.

"The extraordinary one-off gains of last year, generated by escalating fertiliser prices, were absent.

"Instead, our fertiliser blending operation at Glasson contended with a sharp reversal in the price of fertiliser back to the pre-exceptional and more sustainable levels of late 2021, which created one-off adverse stock realisations.

“During the first half, we continued with the integration of the Humphrey acquisition and with investment programmes across the Group to improve efficiencies and increase capacity.

“The overall outlook for the Group’s performance in the second half is encouraging, with the arable sector looking strong.

"However, taking a cautious view, at this stage we do not expect to make up the full impact of the Glasson shortfall. Outside that one-off cost, we remain on track to achieve our targets for the year.”

Chairman Steve Elson added: "Despite a number of headwinds in the broader economy, the outlook for the second half is encouraging, with the arable sector looking strong. The Board believes that the Group remains on track to deliver its underlying financial targets, and we continue to view long-term growth prospects very positively."