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Director's Report

The Directors present their report together with the audited financial statements of the Parent Company (“the Company”) and the Group for the year ended 31 October 2016.

Wynnstay Group Plc (“the Company”) is a public limited company incorporated and domiciled in the United Kingdom under the Companies Act 2006.

The address of the Company’s registered office is Wynnstay Group Plc, Eagle House, Llansantffraid-Ym-Mechain, Powys, SY22 6AQ.

The Company has its primary listing on AIM, part of the London Stock Exchange.

The Group financial statements were authorised for issue by the Board of Directors on 24 January 2017.

Further information on the activities of the business and the Group strategy are presented in the Chairman’s Statement, Chief Executives’ Review, Strategic Report and Corporate Governance Report included within the Group’s full published Annual Report.

Share Capital

The movement in the share capital during the period is detailed in note 27 to the financial statements.

Results, Dividends and Transfers to Reserves

Reported under IFRS the Group profit before taxation is £7,285,000 (2015: £8,337,000). After a taxation charge of £1,456,000 (2015: £1,667,000), the Group profit for the year is £5,829,000 (2015: £6,670,000).

The Directors recommend a final ordinary dividend of 8.00p per ordinary 25p share net (2015: 7.40p per ordinary 25p share net), to be paid on 28 April 2017 to shareholders on the register at the close of business on 31 March 2017.

The share price will be marked ex dividend with effect from the 30 March 2017. In accordance with the rules of the Company’s Scrip Dividend Scheme, eligible shareholders will be entitled to receive their dividend in the form of additional shares. New mandate forms for this scheme should be signed and lodged with the Company Secretary by the 18 April 2017.

Land and Buildings

In the opinion of the Directors, the current open market value of the Group’s interest in land and buildings exceeds the book value at 31 October 2016 (refer to note 16) by approximately £3,990,000 (2015: £3,990,000).

Directors and their Interests

The Directors of the Company who held office during the year and their interests in the share capital of the Company at the year end were as follows:

Wynnstay Directors Share Capital

 

In addition to the above shareholdings, Mr B P Roberts and K R Greetham are trustees of the Company’s Employee Share Ownership Plan trust, which at the year end held 55,841 shares (2015: 52,256 shares). Accordingly these directors were deemed to hold an additional non-beneficial holding in such shares. No Director at the year end held any interest in any subsidiary or associate company. Biographical details of the Directors are set out before the Director’s report.

Directors’ Appointments and Retirements

Under Article 91, Mr B P Roberts and Mr D A T Evans retire from the Board by rotation at the forthcoming Annual General Meeting and being eligible, offer themselves for re-election. Having been appointed during the year, Mr S J Ellwood retires under Article 86, and being eligible offers himself for re-election.

Directors’ and officers’ liability insurance

During the year the Company purchased and maintained liability insurance for its Directors and Officers which remained in force at the date of this report.

Substantial Shareholdings

At 31 October 2016, the following shareholders held 3% or more of the issued share capital of the Company:

Wynnstay Share Capital

Employees

The Group has procedures for keeping its employees informed about the progress of the business. The Group continues to encourage employee motivation by operating a Savings Related Share Option Scheme open to all employees. The Group provides training and support for all employees where appropriate, and gives a full and fair consideration to disabled applicants in respect of duties which may be effectively performed by a disabled person. Where existing employees become disabled, the Group will seek to continue employing them, bearing in mind their disability and provided suitable duties are available. Failing this, all attempts will be made to provide a continuing income. Health and safety matters are a high priority issue for the Board, who consider a monthly report on developments and any incidents that may have occurred, including accidents and near misses.

Policy for Payment of Creditors

The Group agrees terms and conditions with suppliers before business takes place and, while there is no Group code or standard it is not Group policy to extend supplier payment terms beyond that agreed. There are no suppliers subject to special arrangements. The Strategic Report www.wynnstay.co.uk 31 average credit terms for the Group as a whole based on the year end trade payables figure and a 365 day year is 47 days (2015: 45 days).

Auditor Reappointment

Pursuant to section 487 of the Companies Act 2006, a resolution proposing the reappointment of KPMG LLP will be submitted to the Annual General Meeting on 21 March 2017.

Disclosure of Information to Auditor

The Directors who were members of the Board at the time of approving the Directors’ Report are listed on page 26. Having made enquires of fellow Directors each of these Directors, at the date of this report, confirms that:

  • to the best of each Director’s knowledge and belief, there is no relevant audit information of which the Group’s auditor is unaware; and
  • each Director has taken all the steps a Director might reasonably be expected to have taken to be aware of relevant audit information and to establish that the Group’s auditor is aware of that information.

This confirmation is given and should be interpreted in accordance with the provisions of s418 of the Companies Act 2006.

Statement of Directors’ Responsibilities in Respect of the Annual Report and Accounts, Strategic Report and Directors’ Report and the Financial Statements

The Directors are responsible for preparing the Annual Report and Accounts, Strategic Report and Directors’ Report and the financial statements in accordance with applicable law and regulations.

Company law requires the Directors to prepare Group and Parent Company financial statements for each financial year. Under that law they have elected to prepare both the Group and the Parent Company financial statements in accordance with IFRSs as adopted by the EU and applicable law. As required by the AIM Rules of the London Stock Exchange they are required to prepare the Group financial statements in accordance with IFRSs as adopted by the EU and applicable law and have elected to prepare the Parent Company financial statements on the same basis.

Under Company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Group and Parent Company and of their profit or loss for that period. In preparing each of the Group and Parent Company financial statements, the Directors are required to:

  • select suitable accounting policies and then apply them consistently;
  • make judgments and estimates that are reasonable and prudent;
  • state whether they have been prepared in accordance with IFRSs as adopted by the EU; and
  • prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group and the Parent Company will continue in business.

The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Parent Company’s transactions and disclose with reasonable accuracy at any time the financial position of the Parent Company and enable them to ensure that the financial statements comply with the Companies Act 2006. They have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the Group and to prevent and detect fraud and other irregularities.

Under applicable law and regulations, the Directors are also responsible for preparing a Directors’ Report, Corporate Governance Statement and Directors Remuneration Statement that complies with that law and those regulations

The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

By order of the Board

B P Roberts

Finance Director

24 January 2017