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20

Jun

2018

Half Year Results For the six months to 30 April 2018

News

 

 WYNNSTAY GROUP PLC

("Wynnstay" or "the Group")

 Half Year Results

For the six months to 30 April 2018

 

Key Points

 Summary

Encouraging first half results reflect a continuing recovery in farmgate prices across the agricultural sector - farmer confidence is returning

Group saw growth across both Divisions, and acquired 10 country stores in the first half, including 8 in April 2018

Wynnstay remains well-positioned to meet current market expectations for the full year

 

Financial

Revenue from continuing operations up by 10.3% to £218.53m (2017: £198.14m)

Operating profit from continuing operations, before investment impairment and corporate restructuring and acquisition costs, up by 15.9% to £5.09m (2017: £4.40m)

Profit before tax from continuing operations up by 15.7% to £4.91m (2017: £4.25m)

Earnings per share from continuing operations increased by 13.3% to 20.14p (2017: 17.77p)

Net assets at 30 April 2018 increased to £88.05m (2017: £85.03m)

Interim dividend up by 5.0% to 4.41p per share (2017: 4.20p)

 

Operational

Agricultural Division - revenue up 9.9% to £160.14m; operating profit up by 33% to £2.05m

 

strongest recovery was in feeds, driven by both farmers returning to more typical feeding patterns and the protracted winter

 

arable product orders were delayed by the late spring; on a year-to-date basis, sales are now at normal levels

Specialist Retail Division - revenue up 11.4%; to £58.27m; operating profit up by 6.2% to £3.10m

 

Wynnstay Stores benefited from the improved trading backdrop, with like-for-like sales up 8%, excluding inflation

 

acquired eight stores from the administrators of Countrywide Farmers plc at the end of April, and an investment and integration programme is now underway

 

 

establishes a firmer footprint for Group in Devon and Cornwall

         

 

CEO Succession

CEO, Ken Greetham, retires from the Group in early July, with Gareth Davies appointed to succeed him, as previously reported.  A smooth handover process is well advanced.

 

Gareth was formerly Joint Managing Director of Wynnstay (Agricultural Supplies) Ltd

 

 

Ken Greetham, Chief Executive of Wynnstay, commented:

 "Wynnstay's interim results are encouraging, with the Group's stronger performance reflecting the long-awaited upturn for the agricultural sector, which started to come through in 2017. The continuing improvement in farmgate prices has boosted farmer confidence, and demand across most product categories was higher year-on-year. Demand for feed also benefited from the prolonged winter.

 

"We continue to invest in and develop the Group in line with our strategic plans, and, at the end of April, acquired eight stores from the administrators of Countrywide Farmers plc. This strategic acquisition together with two separate store purchases strengthen our presence in a number of counties, especially in the South West of England, where Wynnstay is currently under-represented.

 

"Trading remains in line with overall budgets and the Group is well-positioned to meet current market expectations for the full year."

 

 

Enquiries: 

Wynnstay Group plc

Ken Greetham, Chief Executive

Paul Roberts, Finance Director

T: 01691 827 142

T: 020 3178 6378 (today)

 

 

 

KTZ Communications

Katie Tzouliadis / Emma Pearson

 

T: 020 3178 6378

Shore Capital (Nomad and Broker)

Stephane Auton / Patrick Castle

T: 020 7408 4090