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Wynnstay Final Results for the year ended 31st October 2014

31

Oct

2014

Wynnstay Final Results for the year ended 31st October 2014

News

Key Points

Robust results with Group’s broad spread of activities continuing to be a major strength

Revenue at £413.56m (2013: £413.48m) - affected by commodity price deflation but volume gains in certain markets

Group pre-tax profit* of £8.60m (2013: £8.46m excluding exceptional item of £0.35m and £8.11m after exceptional item) - following robust H2 performance

Earnings per share of 35.28p (2013: 36.43p)

Net cash at the year end of £2.75m (2013: net debt of £2.49m)

Net assets at 31 October 2014 up 8% to £77.23m (2013: £71.55m)

Proposed final dividend of 6.80p, taking total for the year to 10.20p, a rise of 9.7% (2013: 9.30p)

Agricultural Division – revenue at £308.71m, operating profit of £3.80m:
- overall increase in volumes but margin pressure across core product categories
- fall in grain prices (to 2008 levels) tempered fertiliser and grain trading activity in H2

Specialist Retail Division – revenue at £104.62m, operating profit of £4.88m:
- benefited from CPF acquisition, including profit contribution in H2
- now 42 Country Stores (catering mainly for farmers) and 20 Just for Pets stores

Outlook positive despite near term challenges of reduced output prices for farmers

*Group pre-tax profit includes the Group’s share of pre-tax profits from joint ventures and associate investments but excludes the exceptional item

Ken Greetham, Chief Executive, commented:

“Wynnstay’s results are pleasing and in line with overall management expectations, with a robust second half contributing to a record annual profit. The trading backdrop was markedly different to the comparable period last year, with price deflation, falling output prices and a significant variation in weather conditions. However the broad business base has once again provided a buffer against the challenges arising from the varied trading conditions during the year. We continued to extend our market presence across a number of our sectors, aided by our recent acquisitions, including CPF, which has integrated very well.

The macro economic factors driving long term prospects for UK agriculture remain compelling despite the short term issues resulting from the decline in output prices, which has been particularly evident in the dairy sector. While there are only limited signs of a reversal for our farmer customers at this point, we expect global food and energy demand to return output prices to more realistic levels, bringing renewed vigour to the sector.

Wynnstay is well placed, with a strong balance sheet and a broad spread of activities across the sector, producing a track record of sustainable results, and we remain confident about the Group’s prospects despite near term challenges.”

pdf_logo.jpgThe full announcement can be downloaded here

Enquiries:

Wynnstay Group Plc
Ken Greetham, Chief Executive
Paul Roberts, Finance Director
T: 01691 827142
T: 020 3178 6378 (today)

KTZ Communications
Katie Tzouliadis / Deborah Walter T: 020 3178 6378

Shore Capital (Nomad and Broker)
Stephane Auton / Patrick Castle T: 020 7408 4090