Wynnstay announce half-year results

Wynnstay has reported half-year results which, the company said, reflect the weaker trading conditions within the sector.

Sales increased to £260.6 million from £218.5m for the same period in 2018,  with profit before tax down to £4.1m and net assets up by 5.6% to £92.9m.

Gareth Davies, Wynnstay’s chief executive, said: “The combination of abnormally warm weather, which reduced feed demand during traditionally important months, and more cautions spending patterns by farmers in reaction to a softening in farmgate prices and Brexit uncertainties, created challenges for the agricultural supplies sector.

“Wynnstay’s results reflect this.”

Wynnstay’s agriculture division saw revenues of £195m and operating profit of £1.8m. Mr Davies said the results reflected the reduced demand for feed during the traditionally peak winter months, however, the mild and drier weather conditions drove demand for fertiliser and grass seed

The specialist agricultural merchanting division saw revenues of £65.5m and operating profit of £2.7m. Mr Davies said this was primarily driven by an expanded network of depots, however, the business also experienced a reduced demand for weather-related products during the mild winter.

He added: “We continued investing in our manufacturing and production plants, and have also expanded our farming customer base, strengthening our presence in the South West with the acquisition of Stanton Farm Supplies in April 2019.”

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