Improvements in agriculture supports Wynnstay’s results
Agricultural supplier and retailer Wynnstay Group Plc has revealed interim results to 30 April 2017, which show a 6% increase in revenue to £205.32m (2016: £193.24m).
The increase, although partly driven by higher commodity prices has been attributed to a greater demand for agricultural inputs over the winter period following the recovery of farmgate prices.
Underlying profit of £4.07m remained in line with the previous year (2016: £4.08). However the Group’s results were impacted by continued subdued trading at pet products business, Just for Pets, which triggered a non-cash goodwill impairment charge of £3.88m. Taking into account the impairment charges, reported profit before tax was £0.13m (2016: £4.08m).
The Group’s net assets stood at £85.03m (2016: £85.06m).
An interim dividend of 4.20p has been declared – an increase of 5 per cent over last year’s payout of 4.0per share – in line with the board’s progressive dividend policy.
Chief executive of Wynnstay, Ken Greetham, said:
“The recovery in farmgate prices drove an improvement in demand for many agricultural inputs over the winter period. Wynnstay’s agriculture-related activities, including Wynnstay Stores, have benefited as a result over the first half and show year-on-year progress.
“However, the trading loss at our Just for Pets chain has impacted the Group’s overall results and given this unit’s performance we have recognised a non-cash goodwill and investment impairment charge and are restructuring the operations and reviewing options.
“Looking forward, we are encouraged by the improvement in farmgate prices for our farmer customers but believe that the rate of recovery for the agricultural supply sector will remain tempered. Nonetheless, Wynnstay is well-positioned to continue its organic and acquisitive growth strategy. The breadth of the Group’s activities and strong balance sheet provide a solid foundation for further development over the coming years.”
To see the full statement please visit http://www.wynnstay.co.uk/investor-information/reviews-reports-announcements/announcements/