In a year of unprecedented challenges for the agricultural sector, Wynnstay has reported its results for the financial year ending October 31, 2020, which saw sales fall to £431.4 million (2019: £490.60m).
The company said it was affected by commodity deflation and reduced volumes in certain traded commodities, in particular grain. Underlying pre-tax profit increased by 4% to £8.37m.
Gareth Davies, Wynnstay’s chief executive, said: “Wynnstay’s strengths have been clearly demonstrated in what was an exceptionally difficult year for both the agricultural sector and wider society. Our resilient results reflect well on our balanced business model, strong financial management and recent growth initiatives.”
The agricultural division saw sales of £302.58m (2019: £358.69m) and profit of £2.88m (2019: £2.95m) with feed activity performing well, but arable activity being affected by lower demand for arable inputs and reduced volumes of grain available for trading.
The company’s specialist agricultural merchanting division achieved sales of £128.81m (2019: £131.84m) and an increase in profit of 10% to £5.78m.
Mr Davies added: “The new financial year has started well, and Wynnstay’s performance is in line with management expectations. We remain focused on developing our channels to market, investing to build capacity and capability, particularly advisory, and implementing efficiencies.
“Stronger farmgate prices, the EU settlement and UK Agricultural Bill continue to buoy sentiment across the farming sector. We believe that Wynnstay is in an excellent position to help farmers adapt to new priorities set by the Agricultural Bill, and look to the future with confidence.”