Wynnstay has reported half year results which reflect the weaker trading conditions within the sector.
Revenues increased to £260.57m (2018: £218.53m), with profit before tax down to £4.12m (2018: £4.91m) and net assets up by 5.6% to £92.97m (2018: £88.05m).
“The combination of abnormally warm weather, which reduced feed demand during traditionally important months, and more cautions spending patterns by farmers in reaction to a softening in farmgate prices and Brexit uncertainties, created challenges for the agricultural supplies sector. Wynnstay’s results reflect this,” comments Gareth Davies, Wynnstay chief executive.
The agriculture division saw revenues of £195.05m (2018: £160.14m) and operating profit of £1.79m (2018: £2.05m). The results reflected the reduced demand for feed during the traditionally peak winter months, however the mild and drier weather conditions drove demand for fertiliser and grass seed.
The specialist agricultural merchanting division saw revenues of £65.48m (2018: £58.27m) and operating profit of £2.67m (2018: £3.10m), this was primarily driven by an expanded network of depots, however the business also experienced a reduced demand for weather related products during the mild winter.
“We continued investing in our manufacturing and production plants, and have also expanded our farming customer base, strengthening our presence in the South West with the acquisition of Stanton Farm Supplies in April 2019,” explains Mr Davies.
“Wynnstay’s long-term prospects within the industry remain strong, and at this stage of the financial year, the Board’s expectations for the full year outcome remain unchanged.”
The full announcement can be found at www.wynnstay.co.uk/media/1664/half-year-results-rns-london-stock-exchange.pdf