Wet winter dented Wynnstay's profits and sales
Pre-tax profits were down for agricultural supplies group Wynnstay for its latest half year.
The Llansantffraid-based group said its performance had been affected by challenging trading conditions in the six months to the end of April.
The group's pre-tax profit figure for the half year was down from £5.5 million to £4.4m.
The winter months were some of the wettest on record for the UK and prolonged rains significantly disrupted the sowing season.
Revenue was down 19.7 per cent from £409.1m a year earlier to £328.5m – commodity price deflation accounted for £69m of the decrease.
Steve Ellwood, the group's executive chairman, said: “Trading conditions in the first half of the financial year were significantly tougher than in the comparable period last year. The seed planting season was disrupted by persistent rain and wider farmer sentiment was weakened by suppressed farmgate prices and continuing uncertainty over governmental support polices. This was reflected in farm spending and investment patterns.
“We managed trading pressures as effectively as possible and broadly maintained margins across our product categories. We also continued to make progress with our major investment programmes.
“Spring trading over April and May has been ahead of last year and we anticipate more favourable farmgate prices, especially for milk, in the second half of the year. The group continues to benefit from a strong balance sheet and good cash flow, which will support our investment and growth plans. Our expectations for the full year remain unchanged.”
The agriculture division's revenue fell from £333.6m to £257m.
Seed and fertiliser sales were significantly impacted by the wet weather and manufactured feed volumes were 2.3 per cent lower.
The specialist agricultural merchanting division's revenue was down from £75.6m to £71.5m
The group says it remains positioned to deliver a full year performance in line with current market expectations, with a more significant second half weighting than last year.
The board has declared an increased interim dividend of 5.6p per share – up by 1.8 per cent year-on-year.
