Year-end financial results in line with expectation
Figures for the year to end October 2016 have confirmed the Wynnstay Group remains in a strong position despite reduced profitability.
Our year-end results, announced January 25, are in line with expectation and reflect the pressures facing farmers.
Deflation impacted on overall revenue, which was down to £368.14m from £377.38m in 2015.
Profit before tax was £7.29m (2015: £8.34m) with earnings per share at 30.01p (2015: 34.66p).
Net cash increased to £4.28m (2015: £2.14m), helped by strong cash generation, with net assets up to £86.95m (2015: £82.86m). This gives a proposed final dividend of 8p per share, taking the total for the year to 12p (2015: 11.10p) – an increase of 8.1 per cent.
Our agricultural division saw revenue of £249.74m, with an operating profit of £3.01m.
Revenue for our retail division was £118.28m, with operating profit of £4.54m following the completion of the acquisition of the Agricentre chain, which has strengthened our geographic reach.
Indications in the current financial year are that trading is in line with expectation, echoing the agricultural environment that is showing signs of recovery with improving output prices for farmers.
Chief Executive Ken Greetham: “Our results are in line with market expectations and reflect the tough trading environment, which stemmed from an imbalance in world markets and has led to low output prices for farmers, most apparent in the dairy sector.
“Despite the backdrop, we continued to invest significantly across the Group to support efficiencies and future growth, and have further extended our trading reach in the south of England through our Wynnstay Agricentre outlets.
“Over recent months, there has been a recovery in output prices for farmers, mainly as a result of the devaluation of sterling, and the new financial year has started in line with management expectations. We remain optimistic of further improvement and are focused on continuing to develop Wynnstay’s market presence. The Group’s breadth of products and balanced spread of activities remains a key strength.”
Read the full announcement here