REG - Wynnstay Group PLC - Interim Results
Today 07:00
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RNS Number : 0827P Wynnstay Group PLC 01 July 2025
AIM: WYN
Wynnstay Group Plc
("Wynnstay" or "the Group" or "the Company")
Agricultural supplies and services group
Interim Results for the six months ended 30 April 2025
Encouraging first half
Project Genesis firmly under way and Group on track for full year forecasts
KEY POINTS
6 months to 6 months to
30 April 2025 30 April 2024
(unaudited) (unaudited)
Revenue £304.9m £328.5m
Gross profit £42.0m £39.2m
Adjusted operating profit(1) £5.2m £3.7m
Adjusted profit before taxation(2) ("PBT") £5.4m £3.8m
Adjusted earnings per share(3) 18.1p 12.6p
Net cash(4) £10.3m £18.5m
Interim dividend per share 5.7p 5.6p
Statutory results
Operating profit £5.5m £4.4m
Profit before taxation £5.5m £4.4m
Earnings per share 18.40p 14.31p
Net (debt) / cash - full IFRS 16 (£6.3m) £5.3m
(1)Adjusted operating profit excludes amortisation of acquired intangibles,
share-based payment expenses, gains or losses on mark to market of derivatives
and non-recurring items.
(2)Adjusted profit before taxation excludes amortisation of acquired
intangibles, share-based payment expenses, gains or losses on mark to market
of derivatives, non-recurring items and the share of tax incurred by joint
ventures.
(3) Adjusted earnings per share takes into account the tax effect of adjusting
items.
(4)Net (debt) / cash excluding IFRS 16 leases.
Financial
· Profitability improved, reflecting management initiatives,
effective margin management and early benefits from Project Genesis.
· Revenue decreased to £304.9m (2024: £328.5m) due to reduced
feed and grain trading activity, and lower commodity prices.
· Gross profit up 7% to £42.0m (2024: £39.2m).
· Adjusted PBT up 41% to £5.4m (2024: £3.8m), reflecting cost
discipline and better unit margins.
· Balance sheet remains strong, with net cash (pre-IFRS 16) of
£10.3m (2024: £18.5m) at 30 April, which is typically the highest point in
the Group's annual working capital requirement and hence the lowest point in
the annual cash cycle.
· Increased interim dividend declared of 5.7p per share (2024:
5.6p), in line with progressive policy.
Operational
· Feed and Grain
o Adjusted PBT up to £0.9m (2024: £0.4m); revenue lower at £160.5m (2024:
£190.3m).
o Manufactured feed volumes decreased by 6%, mainly reflecting lower poultry
volumes.
o Grain trading volumes down 13%, reflecting poor 2024 harvest (down 21%)
and lower market prices.
o Exit of Twyford Mill completed, delivering expected cost savings; its
poultry feed production has been outsourced.
o Unit margins improved through targeted pricing actions.
· Arable:
o Adjusted PBT up to £1.4m (2024: £0.4m), revenue up to £71.4m (2024:
£69.1m).
o Fertiliser volumes up 6% and seed sales improved 5%, helped by favourable
spring conditions.
o Gross profit margin increased by 170 bps.
o New fertiliser blending plant opened in Avonmouth, Bristol, extending
Group's geographic footprint in the South West and improving efficiencies.
· Stores
o Adjusted PBT up to £3.1m (2024: £3.0m); revenue up to £73.0m (2024:
£69.0m).
o Activity levels - footfall and transaction volumes - in line with prior
period.
o Proactive pricing actions partially offset inflationary pressures.
· Project Genesis launched and on track - a three-year programme to
establish a more efficient operating model to drive higher margins, profits
and cash generation and to support the wider growth plans. Significant
management and operational changes made, as planned.
Outlook
· Farmgate prices remain firm across most sectors, supporting
farmer sentiment despite ongoing uncertainties around governmental financial
support mechanisms.
· Trading in H2 to date has been in line with management
expectations and the Group remains on track to deliver a stronger full-year
performance compared to FY24, in line with market expectations.
Alk Brand, Chief Executive Officer of Wynnstay Group Plc, commented:
"The Group has delivered a strong recovery in the first half, with the
improved profitability reflecting the benefits of our operational initiatives.
The new management team is now in place and is delivering improvements,
supported by a clear plan and strong leadership focus. Project Genesis is
progressing well and, together with ongoing investments, supports our
ambitions to create a stronger, fitter business, which provides our customers
with the highest service levels and our shareholders with improved returns.
Current trading is encouraging, and the Group remains well-positioned to
achieve market expectations for the full year."
Steve Ellwood, Chairman of Wynnstay Group Plc, commented:
"We now have a refreshed executive management team in place, which is focused
on integration, execution, and driving shareholder returns. Project Genesis is
firmly established and progressing well, and we expect to complete the
development of our Group growth strategy in the second half. It will
complement and build on the foundations already laid. The Group has a strong
balance sheet and solid financial platform, and we are investing in
initiatives that will benefit our customers and drive earnings per share and
long-term value for shareholders."
Enquiries:
Wynnstay Group plc Alk Brand, Chief Executive Officer T: 020 3178 6378 (Today)
Rob Thomas, Chief Financial Officer T: 01691 827 142
KTZ Communications Katie Tzouliadis, Robert Morton T: 020 3178 6378
Shore Capital (Nomad and Broker) Stephane Auton/Tom Knibbs (Corporate Advisory) T: 020 7408 4090
Henry Willcocks (Corporate Broking)
Wynnstay will be hosting an online presentation of the Company's results on
Wednesday, 9 July 2025 at 12.30 p.m.. Shareholders and potential investors
wishing to join the event can register at
https://bit.ly/WYN_FY24_results_webinar
(https://lsems.gravityzone.bitdefender.com/scan/aHR0cHM6Ly9iaXQubHkvV1lOX0ZZMjRfcmVzdWx0c193ZWJpbmFy/90AF34E1329EEABF3D9C55C9DCC54C505700BA688637646F11059B1E9B20C067?c=1&i=1&docs=1)
. Further information can be obtained from KTZ Communications.
OPERATING REVIEW
Overview
The Group's first half results show a significant improvement on the same
period last year, with profitability recovering from last year's lows. All
three segments, Feed and Grain, Arable, and Stores contributed higher levels
of profitability.
One of the most important actions we took in the first half of the new
financial year was the launch of Project Genesis. This is our Group-wide
operational change programme, which is designed to create a more efficient
operating model that will help to drive increased profitability and facilitate
future growth plans. It is a three-year programme, so still at an early stage,
but we are pleased to report a good start and initial benefits.
The Group's improvement in profitability reflects decisive operational action
taken to support efficiencies. This includes the decision to exit early the
Twyford Mill poultry manufacturing site and move production to a third party.
Market conditions were generally more favourable than last year, with firmer
farmgate prices in key sectors, including dairy, red meat and free-range eggs,
and good weather conditions in the spring planting season, in sharp contrast
to the prior year. These better conditions helped to support farmer sentiment
despite the ongoing uncertainties around governmental policy.
Cost inflation remained challenging and was most evident in labour, energy and
logistics. We took mitigating action, including with pricing, which helped to
partially offset the effects, and continued to manage costs tightly.
Financial Results
Group revenue for the period decreased by 7% to £304.9m (2024: £328.5m),
reflecting lower manufactured poultry feed and traded grain volumes, and lower
commodity prices.
Gross profit increased by 7% to £42.0m (2024: £39.2m), and adjusted
operating profit rose by 41% to £5.2m (2024: £3.7m). This was the result of
a sharper focus on margin management and operational efficiency.
Adjusted profit before taxation increased by 42% to £5.4m (2024: £3.8m), and
adjusted earnings per share rose by 43% to 18.1p (2024: 12.6p). Statutory
profit before tax increased to £5.5m (2024: £4.4m). This turnaround mainly
reflected management actions across the business.
Balance Sheet and Cash Flow
The Group remains in a strong financial position. Net cash (excluding IFRS 16
lease liabilities) at the half-year end, which is typically the peak point in
the Group's working capital requirements, and hence the lowest point in the
annual cash cycle, was £10.3m (30 April 2024: £18.5m). The year-on-year
reduction in cash reflects the working capital investment required to stock
the new Avonmouth fertiliser facility and the timing of certain supplier
payments around the half year. We expect the majority of this impact to
unwind in the second half.
The Group has undrawn committed facilities in place, which provide significant
financial liquidity, and the Board has a revised capital allocation framework
to support long-term growth.
Capital Allocation
The Board is committed to maximising long-term shareholder returns through the
disciplined deployment of capital. The Group's capital allocation framework is
structured around four key principles:
· improving internal efficiency through simplifying the operating
model;
· investing for organic growth where capacity is constrained or
market opportunity exists;
· pursuing strategic, value-accretive acquisitions; and
· maintaining regular and progressive returns to shareholders.
Return on capital currently varies across the Group, reflecting differences in
business performance, market conditions and historical investment. In the near
term, our focus is on strengthening the operational platform through targeted
investment and transformation. Our objective is to raise returns across all
three segments and generate consistent, attractive Group-level returns over
time.
Dividends
The Board is pleased to declare an increased interim dividend of 5.7p per
share (2024: 5.6p). This is payable on 31 October 2025 to shareholders on the
register at 26 September 2025. It is in line with our progressive dividend
policy, supported by the Group's underlying cash generation, and reflects our
confidence in prospects for the year.
Segmental Review
Feed and Grain
Wynnstay manufactures and supplies a wide range of feeds and animal nutrition
products, principally for the dairy, beef, sheep and poultry sectors. The
Group operates two feed mills and three blending plants, manufacturing feed
that is offered in compounded, blended and meal forms, and sold both in bulk
and in bags. Bagged feed is predominantly sold through the Group's store
network. Wynnstay also sells a range of raw materials for feed through its
Wynnstay and Glasson Grain brands. Farmers are offered grain and combinable
crop marketing services through the GrainLink business.
Feed and Grain activities delivered an improved contribution, with adjusted
profit before tax of £0.9m (2024: £0.4m), driven by management action to
improve margins and reduce manufacturing costs. This was despite decreased
revenue of £160.5m (2024: £190.3m), which reflected lower grain trading
volumes and prices and lower overall feed volumes.
Manufactured feed volumes decreased by 6%, reflecting the expected loss of
poultry volumes following the planned transition of supply associated with the
closure of the Twyford Mill. Underlying volumes were flat in a market that
grew by approximately 4% over the same period (source: Agriculture and
Horticulture Development Board ("AHDB"), GB animal feed statistics). We
completed the closure of Twyford Mill in January 2025, as planned. This has
delivered a significant reduction in fixed overheads and, coupled with a
greater focus on product margin, cost efficiency has been improved across the
network. This has led to an improvement in unit margins. The sale of the
moth-balled facility at Calne, to the acquiror referred to in the Annual
Report, is now expected to complete in the autumn.
Grain trading volumes were 13% lower year-on-year. This largely reflected the
reduced availability of combinable crops following the second lowest UK
harvest on record (21% down, according to AHDB) as well as reduced grain
prices, which also subdued grower selling activity. We expect grain trading
levels to improve in line with volume recovery. Crop production in 2025 is
expected to improve on the weak 2024 harvest, though the extent of the
recovery remains to be seen. Our focus is on converting increased grain
availability into higher sales through strong execution and customer
engagement.
In the period, we restructured the commercial team and put in place measures
to manage margin recovery. This helped to support overall profitability in the
period, with the benefits continuing. Project Genesis will deliver further
operational benefits, including removing production bottlenecks and enhancing
capacity utilisation across our feed manufacturing sites.
Following the completion of our earlier investment programme at our feed plant
in Carmarthen, we have now started a further phase of investment. This will
increase Carmarthen's production capacity by over 20,000 tonnes and deliver
attractive returns. We have also commissioned a new combined heat and power
installation ("CHP") at our Llansantffraid plant, which is expected to
generate strong returns. As well as improving efficiencies, these investments
will help to support future growth.
Arable
The Group supplies a full range of high-quality, Wynnstay-branded agricultural
fertiliser products (compound, straight, and blended), and the Glasson
fertiliser blending operation is the UK's second largest. Our specialists
offer farmers bespoke fertiliser programmes. These address specific soil
conditions, thereby increasing the efficiency of the fertiliser and improving
plant growth. The Group also supplies a wide range of seeds (spring, autumn,
grass, maize, catch & forage, and environmental seeds), and operates a
major seed processing facility in Shrewsbury, Shropshire.
Arable activities generated increased revenue of £71.4m (2024: £69.1m) and
adjusted profit before tax showed a strong recovery at £1.4m (2024:
£0.4m).
Fertiliser volumes increased by 6%, and seed sales improved by 5%, both
operations benefiting from the favourable planting conditions in the period,
in contrast to last year.
Gross profit margin improved by 170bps, driven by disciplined commercial
execution and strong pricing management.
We completed and opened our new fertiliser blending plant at Avonmouth,
Bristol, on time and within budget, and the new facility is operating very
well. Its commissioning was a key operational milestone and the new plant
strengthens our fertiliser production capacity and improves our distribution
network in the region.
Stores
Wynnstay operates a network of 51 stores catering mainly for the needs of
farmers but also rural dwellers. Stores are mostly located within the
livestock areas of England and Wales. The store network is supported by
multiple routes to market, including a digital sales platform, sales trading
desk, regional field sales teams and specialist catalogues.
Stores generated increased revenue of £73.0m (2024: £69.1m) and higher
adjusted profit before tax of £3.1m (2024: £3.0m), a robust performance.
Activity levels remained in line with the prior year, with footfall and
transaction volumes stable.
Cost pressures in logistics, energy, and labour were managed as effectively as
possible. We continued to act proactively on pricing and to focus on service
levels, which has helped to support the Stores' performance.
Project Genesis
Project Genesis, our three-year transformation programme, progressed well in
the period. The overall objectives of the programme are to deliver a more
integrated and efficient operating model, improve margins, and create a strong
platform for sustainable growth.
Each of our planned workstreams has been firmly established and are designed
to deliver specific improvements to the business. To date, we have implemented
a new divisional structure, simplified management layers, and invested
selectively in process efficiency. Early benefits are coming through, and we
remain confident of the programme's potential to materially enhance Group
performance.
Our Group-wide asset review is progressing as planned. As part of this
initiative, we are integrating the Youngs Animal Feeds business into our core
animal feed operations, moving away from the stand-alone model. The associated
non-recurring cash and non-cash items of this action, alongside other
rationalisation initiatives under consideration, will be reflected in in the
second half of the current financial year. The improvement in return on
capital will come through fully in the next financial year.
Update on Health and Safety Executive ("HSE") Investigation
The HSE investigation that opened following a tragic fatality in January 2025
remains ongoing. As reported in the Group's 2024 Annual Report, we continue to
assist all relevant authorities with their inquiries. We will provide a
further update, as appropriate. Our deepest sympathies remain with the family,
friends, and colleagues affected.
Outlook
Farmgate prices remain supportive across most sectors, underpinning farmer
sentiment despite ongoing uncertainties around some governmental support
schemes.
The Group is trading in line with full-year market expectations and should
deliver a stronger overall performance for FY25 compared to FY24, as
anticipated.
We remain committed to delivering enhanced shareholder value through focused
execution, disciplined investment, and incremental improvement. The
foundations we are laying down through Project Genesis will provide a solid
base for both near-term improvement and longer-term growth. The Group remains
in a strong financial position, with a robust balance sheet and good cash
flows, which supports our positive view of prospects.
Alk
Brand
Rob Thomas
Chief Executive
Officer
Chief Financial Officer
WYNNSTAY GROUP PLC
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Note Unaudited six months ended 30 April 2025 Unaudited six months ended 30 April 2024 Audited year ended 31 October 2024
£'000 £'000 £'000
Revenue 304,942 328,490 613,053
Cost of sales (262,935) (289,252) (533,844)
Gross profit 42,007 39,238 79,209
Manufacturing, distribution and selling costs (31,337) (30,008) (59,809)
Administrative expenses (5,573) (5,593) (11,925)
Other operating income 5 150 83 451
Adjusted operating profit(1) 5,247 3,720 7,926
Amortisation of acquired intangible assets and share-based payment expense 6 (221) (249) (543)
Gains / (losses) on mark to market of derivatives 6 494 942 (473)
Non-recurring items - - (2,312)
Operating profit 5,520 4,413 4,598
Interest income 197 215 497
Interest expense (585) (615) (1,572)
Share of profits in joint ventures using the equity method 553 518 765
Adjusted profit before taxation(2) 5,412 3,838 7,616
Amortisation of acquired intangible assets and share-based payment expense 6 (221) (249) (543)
Gains / (losses) on mark to market of derivatives 6 494 942 (473)
Share of tax incurred by joint venture (138) (129) (191)
Non-recurring items 6 - - (2,312)
Profit before taxation 5,547 4,402 4,097
Taxation 7 (1,316) (1,113) (1,308)
Profit for the period 8 4,231 3,289 2,789
Other comprehensive (expense) / income
Items that will be reclassified subsequently to profit or loss:
- Net change in the fair value of cashflow hedges taken to equity (net of tax) 39 (97) 27
- Recycled cashflow hedge taken to income statement (96) 44 (95)
(57) (53) (68)
Total comprehensive earnings for the period 4,174 3,236 2,721
Basic earnings per share 12 18.40 14.31 12.12
Diluted earnings per share 12 18.30 13.91 11.75
(1)Adjusted operating profit excludes amortisation of acquired intangibles,
share-based payment expenses, gains or losses on mark to market of derivatives
and non-recurring
items.
(2)Adjusted profit before taxation excludes amortisation of acquired
intangibles, share-based payment expenses, gains or losses on mark to market
of derivatives, non-recurring items and the share of tax incurred by joint
ventures.
WYNNSTAY GROUP PLC
CONSOLIDATED BALANCE SHEET
As at 30 April 2025
Note Unaudited 30 April 2025 Unaudited 30 April 2024 Audited 31 October 2024
£'000 £'000 £'000
NON-CURRENT ASSETS
Goodwill 15,530 15,530 15,530
Intangible assets 4,728 4,836 4,727
Investment property 1,850 1,850 1,850
Property, plant and equipment 23,020 24,024 22,416
Right-of-use assets 9 18,108 14,559 16,919
Investments accounted for using equity method 4,590 4,796 4,257
Derivative financial instruments - 101 10
67,826 65,696 65,709
CURRENT ASSETS
Assets held for sale 1,266 - 1,266
Inventories 53,036 53,554 43,328
Trade and other receivables 91,595 92,178 70,418
Financial assets - loan to joint ventures 600 639 600
Cash and cash equivalents 10 11,010 24,897 38,289
Current tax asset - - 950
Derivative financial instruments 32 750 52
157,539 172,018 154,903
TOTAL ASSETS 225,365 237,714 220,612
CURRENT LIABILITIES
Financial liabilities - borrowings 10 (726) (2,595) (2,619)
Lease liabilities 9 (3,987) (3,864) (4,399)
Trade and other payables (66,552) (78,523) (59,499)
Current tax liabilities (1,537) (732) -
Provisions (370) - (1,199)
Derivative financial instruments (84) (265) (940)
(73,256) (85,979) (68,656)
NET CURRENT ASSETS 84,283 86,039 86,247
NON-CURRENT LIABILITIES
Financial liabilities - borrowings 10 - (3,794) (2,846)
Lease liabilities 9 (12,554) (9,325) (11,259)
Trade and other payables (7) (9) (7)
Derivative financial instruments (354) (5) (1)
Deferred tax liabilities (2,916) (2,290) (2,994)
(15,831) (15,423) (17,107)
TOTAL LIABILITIES (89,087) (101,402) (85,763)
NET ASSETS 136,278 136,312 134,849
EQUITY
Share capital 5,782 5,769 5,782
Share premium 44,022 43,873 44,022
Share-based payments 618 1,412 506
Cash flow hedge reserve (22) 50 35
Other reserves 1,492 1,516 1,492
Retained earnings 84,386 83,692 83,012
TOTAL EQUITY 136,278 136,312 134,849
WYNNSTAY GROUP PLC
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
As at 30 April 2025
Share premium Share-based payment Cashflow hedge reserves Other
Share reserves Retained
capital earnings Total
Group £000 £000 £000 £000 £000 £000 £000
At 31 October 2023 5,739 43,482 1,287 103 1,516 83,104 135,231
Profit for the period - - - - - 3,289 3,289
Net change in the fair value of cashflow hedges taken to equity, net of tax - - - (97) - - (97)
Recycle cashflow hedge to income statement - - - 44 - - 44
Total comprehensive income - - - (53) - - 3,289 3,236
Transactions with owners
Share-based payment - - 125 - - 125
Shares issued in the year 30 391 - - - - 421
Dividends - - - - - (2,701) (2,701)
30 391 125 - - (2,701) (2,155)
At 30 April 2024 5,769 43,873 1,412 50 1,516 83,692 136,312
Profit for the period - - - - - (499) (499)
Net change in the fair value of cashflow hedges taken to equity, net of tax - - - 124 - - 124
Recycle cashflow hedge to income statement - - - (139) - - (139)
Total comprehensive income - - - (15) - (499) (514)
Transactions with owners
Share-based payment - - 184 - - 184
Exercise, lapse or forfeit of share-based payments - - (1,090) - - 1,090 -
Shares issued in the year 13 149 - - - - 162
Dividends - - - - - (1,294) (1,294)
Transfer - - - - (24) 24 -
13 149 (906) - (24) (180) (948)
At 31 October 2024 5,782 44,022 506 35 1,492 83,012 134,849
Profit for the period - - - - - 4,231 4,231
Net change in the fair value of cashflow hedges taken to equity, net of tax - - - 39 - - 39
Recycle cashflow hedge to income statement - - - (96) - - (96)
Total comprehensive income - - - (57) - 4,231 4,174
Transactions with owners
Share-based payment - - 112 - - (112) -
Dividends - - - - - (2,745) (2,745)
- - 112 - - (2,857) (2,745)
At 30 April 2025 5,782 44,022 618 (22) 1,492 84,386 136,278
WYNNSTAY GROUP PLC
CONSOLIDATED CASH FLOW STATEMENT
For the six months ended 30 April 2025
Unaudited six months ended 30 April 2025 Unaudited six months ended 30 April 2024 Audited year ended 31 October 2024
Note £'000 £000 £000
Cash flows from operating activities
Cash (used in) / generated from operations 8 (16,101) 658 20,761
Interest received - cash 197 215 497
Interest paid - cash (123) (248) (568)
Tax paid 923 (550) (1,556)
Net cash (used in) / generated from operating activities (15,104) 75 19,134
Cash flows from investing activities
Proceeds from sale of property, plant and equipment 176 204 990
Purchase of property, plant and equipment (1,753) (567) (2,174)
Acquisition of subsidiary undertaking, net of cash acquired (41) (37) (33)
Receipt of repayment of short-term loans to joint ventures - - 39
Disposal of investments - - 123
Dividends received from joint ventures and associates - - 601
Net cash used by investing activities (1,618) (400) (454)
Cash flows from financing activities
Net proceeds from the issue of ordinary share capital - 421 583
Proceeds from new loans - - 92
Lease repayments 9 (3,030) (2,654) (6,291)
Repayment of borrowings (4,738) (949) (1,897)
Dividends paid to shareholders 14 (2,745) (2,701) (3,995)
Net cash used in financing activities (10,513) (5,883) (11,508)
Net (decrease) / increase in cash and cash equivalents (27,235) (6,208) 7,172
Effects of exchange rate changes (44) 50 62
Cash and cash equivalents at the beginning of the period 38,289 31,055 31,055
Cash and cash equivalents at the end of the period 10 11,010 24,897 38,289
WYNNSTAY GROUP PLC
NOTES TO THE ACCOUNTS
GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
Wynnstay Group Plc has a number of operations. They are described in note 4
segmental reporting.
Wynnstay Group Plc is a company incorporated and domiciled in the United
Kingdom. The address of its registered office is shown in note 3.
1. BASIS OF PREPARATION
The Interim Report was approved by the Board of Directors on 1 July 2025.
The condensed financial statements for the six months to the 30 April 2025
have been prepared in accordance with International Accounting Standard (IAS)
34 and the Disclosure Guidance and Transparency Rules sourcebook of the UK's
Financial Conduct Authority, except disclosure in note 3.
The financial information for the Group for the year ended 31 October 2024 set
out above is an extract from the published financial statements for that year,
which have been delivered to the Registrar of Companies. The auditor's report
on those financial statements was not qualified and did not contain statements
under section 498(2) or 498(3) of the Companies Act 2006.
The information contained in this document does not constitute statutory
accounts within the meaning of section 434 of the Companies Act 2006. The
financial information for the six months ended 30 April 2025 and for the six
months ended 30 April 2024 are unaudited. The consolidated financial
statements are presented in sterling, which is also the Group's functional
currency. Amounts are rounded to the nearest thousand, unless otherwise
stated.
The condensed consolidated interim financial statements should be read in
conjunction with the annual consolidated financial statements for the year
ended 31 October 2024, which have been prepared in
accordance with UK adopted International Accounting Standards.
2. GOING CONCERN
The Directors have prepared the condensed consolidated interim financial
statements on a going concern basis, having satisfied themselves that the
Group has adequate resources to continue in operational existence for the
foreseeable future from a review of internal budgets and forecasts and current
banking facilities.
The Group has a sound financial base and forecasts that show profitable
trading and sufficient cash flow and resources to meet the requirements of the
business, including compliance with banking covenants and on-going liquidity.
In assessing their view of the likely future financial performance of the
Group, the Directors consider industry outlooks from a variety of sources, and
various trading scenarios. This analysis showed that the Group is well placed
to manage its business risks successfully.
In conclusion, the Directors have a reasonable expectation that the Group has
adequate resources to continue in operational existence for the foreseeable
future. Thus, they continue to adopt the going concern basis of accounting in
preparing the annual financial statements.
3. SIGNIFICANT ACCOUNTING POLICIES
The condensed financial statements have been prepared under the historical
cost convention other than shared-based payments, which are included at fair
value and certain financial instruments which are explained in the annual
consolidated financial statements for the year ended 31 October 2024.
The condensed consolidated interim financial statements for the six months to
30 April 2025 have been prepared on the basis of the accounting policies
expected to be adopted for the year ending 31 October 2025. These are
anticipated to be consistent with those set out in the Group's latest annual
financial statements for the year ended 31 October 2024. A copy of these
financial statements is available from the Company's Registered Office at
Eagle House, Llansantffraid, Powys, SY22 6AQ.
Alternative performance measures
The Board believe that Adjusted operating profit and Adjusted profit before
taxation better reflect the adjusted commercial trends and performance of the
Group and provides investors and other users of the accounts with useful
information on these trends.
Adjusted operating profit is statutory operating profit after adding back
non-recurring items, amortisation of acquired intangible assets, share-based
payment expenses and unrecognised fair value derivative gains/(losses).
Adjusted profit before taxation is statutory profit before taxation after
adding back non-recurring items, amortisation of acquired intangible assets,
share-based payment expenses, unrecognised fair value derivative
gains/(losses) and the share of tax incurred by joint ventures.
Non-recurring items
Non-recurring items are items that the Board believes are material and one-off
or non-operating in nature and are better disclosed separately in the income
statement. Events which may give rise to non-recurring items include, but
are not limited to, gains or losses on the disposal of
subsidiaries/businesses, gains or losses on the disposal or revaluation of
properties, gains or losses on the disposal of investments, the restructuring
of the business, the integration of new businesses, acquisition related costs,
changes to estimates in relation to deferred and contingent consideration for
prior period business combinations and asset impairments including impairment
of goodwill.
4. SEGMENTAL REPORTING
IFRS 8 requires operating segments to be identified on the basis of internal
financial information about the components of the Group that are regularly
reviewed by the chief operating decision maker ("CODM") to allocate resources
to the segments and to assess their performance. The chief operating
decision maker has been identified as the Board of Directors ("the Board").
The Board reviews the Group's internal reporting in order to assess
performance and allocate resources. The Board has determined that the
operating segments, based on these reports are Feed and Grain, Arable and
Stores.
Feed and Grain - Wynnstay manufactures and supplies a wide range of feeds and
animal nutrition products for a range of sectors, including, dairy, beef,
sheep, and poultry. The business operates three feed mills and three blending
plants, and offers nutrition products in compounded, blended and meal forms,
both in bulk and in bags. Bagged feed is predominantly sold through our
stores. In addition, we sell a range of feed raw materials through both the
Wynnstay and Glasson Grain brands, as well as offering grain and combinable
crop marketing services through the GrainLink business.
Arable - Our arable operations supply a wide range of services and products to
arable and grassland farmers. These include seeds, fertilisers and
agrochemicals. Our fertiliser manufacturing business, Glasson Fertiliser, is
the second largest fertiliser blender in the UK.
Stores - Wynnstay operates a network of 51 stores catering mainly for the
needs of farmers but also rural dwellers. Stores are mostly located within the
livestock areas of England and Wales. The network is supported by a
multi-channel sales route to market, which includes a digital sales platform,
a sales trading desk and specialist catalogues.
The Board assesses the performance of the operating segments based on a
measure of profit before tax (Adjusted profit before tax). Other information
provided to the Board is measured in a manner consistent with that in the
financial statements.
Feed Arable Stores Total
and Grain
Six months ended 30 April 2025 (unaudited): £000 £000 £000 £000
Revenue 160,509 71,445 72,988 304,942
Gross profit 16,199 6,670 19,138 42,007
Result
Adjusted operating profit 393 1,524 3,330 5,247
Amortisation of acquired intangible assets and share-based payment expense (138) (9) (74) (221)
Gain on mark to market of derivatives 494 - - 494
Operating profit 749 1,515 3,256 5,520
Adjusted profit before taxation 908 1,429 3,075 5,412
Amortisation of acquired intangible assets and share-based payment expense (138) (9) (74) (221)
Gain on mark to market of derivatives 494 - - 494
Share of tax incurred by joint ventures and associates (138) - - (138)
Profit before taxation 1,126 1,420 3,001 5,547
Income tax expense (267) (337) (712) (1,316)
Profit for the year 859 1,083 2,289 4,231
Other information
Depreciation and amortisation (1,154) (581) (1,585) (3,320)
Property, plant and equipment additions 1,578 2,658 962 5,198
Balance sheet
Segment assets 89,427 61,797 74,141 225,365
Segment liabilities (35,280) (30,966) (22,841) (89,087)
Net assets 54,147 30,831 51,300 136,278
Feed Arable Stores Total
and Grain
Six months ended 30 April 2024 (unaudited): £000 £000 £000 £000
Revenue 190,345 69,064 69,081 328,490
Gross profit 16,878 5,301 17,060 39,239
Result
Adjusted operating profit 35 534 3,151 3,720
Amortisation of acquired intangible assets and share-based payment expense (154) (15) (80) (249)
Gain on mark to market of derivatives 942 - - 942
Operating profit 823 519 3,071 4,413
Adjusted profit before taxation 436 441 2,961 3,838
Amortisation of acquired intangible assets and share-based payment expense (154) (15) (80) (249)
Gain on mark to market of derivatives 942 - - 942
Share of tax incurred by joint ventures and associates (129) - - (129)
Profit before taxation 1,095 426 2,881 4,402
Income tax expense (277) (108) (728) (1,113)
Profit for the year 818 318 2,153 3,289
Other information
Depreciation and amortisation (1,148) (518) (1,474) (3,140)
Property, plant and equipment additions 1,317 269 1,494 3,080
Balance sheet
Segment assets 87,918 73,950 75,846 237,714
Segment liabilities (43,627) (32,520) (25,255) (101,402)
Net assets 44,291 41,430 50,591 136,312
Feed and Grain Arable Stores Total
Year ended 31 October 2024 (audited): £000 £000 £000 £000
Revenue 353,264 119,705 140,084 613,053
Gross profit 33,200 11,402 34,607 79,209
Result
Adjusted operating profit 157 1,629 6,140 7,926
Amortisation of acquired intangible assets and share-based payment expense (142) (90) (311) (543)
Loss on mark to market of derivatives (473) - - (473)
Non-recurring items (2,087) - (225) (2,312)
Operating profit (2,545) 1,539 5,604 4,598
Adjusted profit before taxation 682 1,410 5,524 7,616
Amortisation of acquired intangible assets and share-based payment expense (142) (90) (311) (543)
Loss on mark to market of derivatives (473) - - (473)
Share of tax incurred by joint ventures and associates (191) - - (191)
Non-recurring items (2,087) - (225) (2,312)
Profit before taxation (2,211) 1,320 4,988 4,097
Income tax expense 706 (421) (1,593) (1,308)
Profit for the year (1,505) 899 3,395 2,789
Other information
Depreciation and amortisation (1,728) (1,169) (2,110) (5,007)
Property, plant and equipment additions 4,582 457 2,878 7,917
Balance sheet
Segment assets 90,272 43,692 86,648 220,612
Segment liabilities (43,578) (14,898) (27,287) (85,763)
Net assets 46,694 28,794 59,361 134,849
5. OTHER OPERATING INCOME
Unaudited six months ended 30 April 2025 Unaudited six months ended 30 April 2024 Audited year ended 31 October 2024
£000 £000 £000
Rental Income 145 82 185
R&D Tax Income - - 250
Investment Income 4 - 14
Government Grant Income 1 1 2
Other Operating Income Totals 150 83 451
6. AMORTISATION OF ACQUIRED INTANGIBLE ASSETS, SHARE-BASED PAYMENTS AND
NON-RECURRING ITEMS
Unaudited six months ended 30 April 2025 Unaudited six months ended 30 April 2024 Audited year ended 31 October 2024
£000 £000 £000
Amortisation of acquired intangibles and share-based payment expense
Amortisation of intangibles 109 124 234
Cost of shared based reward 112 125 309
221 249 543
Non-recurring items
Business reorganisation expenses - - 1,268
Environmental expenses - - 202
Loss on disposal of joint venture - - 23
Impairment of Asset held for Sale - - 819
- 2,312
(Gain) / Loss on mark to market of derivatives (494) (942) 473
7. TAXATION
The tax charge for the six months periods ended 30 April 2025 and 30 April
2024 are based on the apportionment of the estimated tax charge for the
respective full years.
The effective tax rate is 23.7% (6 months ended 30 April 2024: 25.3%).
8. CASH (USED IN) / GENERATED FROM OPERATIONS
Unaudited six months ended 30 April 2025 Unaudited six months ended 30 April 2024 Audited year ended 31 October 2024
£000 £000 £000
Profits for the year from operations 4,231 3,289 2,789
Adjustments for:
Taxation 1,316 1,113 1,308
Depreciation of tangible fixed assets 1,074 1,111 2,276
Amortisation of right-of-use assets 2,248 2,029 3,825
Amortisation of other intangible fixed assets 109 124 234
(Profit) on disposal of property, plant and equipment (119) (134) (236)
Loss on disposal on joint venture - - 23
Impairment of fixed asset - - 819
Interest on lease liabilities 462 367 1,004
Net Interest expense (74) 33 71
Share of post-tax results of joint ventures (415) (389) (574)
Share-based payments 112 125 309
Derivative held at fair value 354 (854) 347
Hedge ineffectiveness (39) 25 77
Government grant (1) (1) (2)
Net movement in provisions (829) - 1,199
Changes in working capital (excluding effects of acquisitions and disposals of
subsidiaries):
(Increase) / Decrease in inventories (9,708) 1,902 12,128
(Increase) / Decrease in trade and other receivables (20,682) (10,902) 10,363
Increase / (Decrease) in payables 5,860 2,820 (15,199)
Cash (used in) / generated from operations (16,101) 658 20,761
Cash and cash equivalents
Cash and cash equivalents are all non-restricted balances and are all cash at
bank and held with HSBC UK Bank Plc, except for £981,000 (2024: £Nil) which
is held at International FC Stones for wheat futures hedging purposes. HSBC UK
Bank Plc's credit rating per Moody's for long-term deposits is Aa3 (2024:
Aa3). £940,000 of the cash and cash equivalent balances are denominated in
foreign currencies, EUR (98%) and USD (2%) (2024: £2,690,000, in EUR (51%)
and USD (49%)). All other amounts are denominated in GBP and are booked at
fair value.
Borrowings
Bank loans and overdrafts are secured by an unlimited composite guarantee of
all the trading entities within the Group. The outstanding bank loan of £Nil
(2024: £5,691,000 has interest of 1.75% over the daily SONIA rate up to the
point of repayment.
Loan stock is redeemable at par at the option of the Company or the holder.
Interest of 5.0% (2024: 3.7%) per annum is payable to the holders.
9. LEASES
Land and Buildings Plant, Machinery and Motor Vehicles Total
Right-of-use assets £000 £000 £000
As at 31 October 2023 8,065 6,064 14,129
Additions 519 1,995 2,514
Disposals - (13) (13)
Reclassifications - (42) (42)
Depreciation (999) (1,030) (2,029)
As at 30 April 2024 7,585 6,974 14,559
Additions* 3,209 1,647 4,856
Disposals (543) 9 (534)
Reclassifications* - (177) (177)
Depreciation (691) (1,094) (1,785)
As at 31 October 2024 9,560 7,359 16,919
Additions 1,967 1,483 3,450
Depreciation (1,123) (1,138) (2,261)
As at 30 April 2025 10,404 7,704 18,108
Land and Buildings Plant, Machinery and Motor Vehicles Total
Lease liabilities £000 £000 £000
As at 31 October 2023 8,268 4,707 12,975
Additions 519 1,995 2,514
Disposals - (13) (13)
Interest expense 161 206 367
Lease payment (1,100) (1,554) (2,654)
As at April 2024 7,848 5,341 13,189
Additions* 3,941 1,646 5,587
Disposals (552) 562 10
Interest expense 312 197 509
Lease payment (1,519) (2,118) (3,637)
Reclassifications* - - -
As at 31 October 2024 10,030 5,628 15,658
Additions 1,967 1,483 3,450
Disposals - - -
Interest expense 240 222 462
Lease payment (1,361) (1,668) (3,029)
As at 30 April 2025 10,876 5,665 16,541
Within one year One to two years Two to five years Over five years Total
Lease liability ageing £000 £000 £000 £000 £000
As at 30 April 2025 3,987 7,210 3,616 1,728 16,541
As at April 2024 3,864 3,166 3,993 2,166 13,189
*Disclosures in the six-month period to 31 October 2024 have been restated to
reflect certain fully depreciated property leases renewals. Upon renewal, the
accumulated depreciation was reversed through reclassification to reinstate
the right of use assets at an updated carrying amount, reflecting the renewed
lease terms. Rather than disclosing as a reclassification, these renewals
are better reflected in an addition to cost value and lease liabilities in the
period.
10. NET CASH
Unaudited six months ended 30 April 2025 Unaudited six months ended 30 April 2024 Audited year ended 31 October 2024
£000 £000 £000
Cash and cash equivalents per balance sheet 11,010 24,897 38,289
Bank overdrafts repayable on demand - - -
Cash and cash equivalents per balance sheet 11,010 24,897 38,289
Bank loans due within one year or on demand - (1,897) (1,897)
Loan stock (unsecured) (726) (698) (722)
Net cash/ (debt) due within one year 10,284 22,302 35,670
Bank loans due after one year - (3,794) (2,846)
Total net cash/ (debt) excluding leases 10,284 18,508 32,824
11. FINANCIAL INSTRUMENTS
Unaudited six months ended 30 April 2025 Unaudited six months ended 30 April 2024 Audited year ended 31 October 2024
£000 £000 £000
Cash and cash equivalents per balance sheet 11,010 24,897 38,289
Trade receivables, net of loss allowance 85,749 87,643 68,256
Loan to joint venture 600 639 600
Derivative financial instruments 32 851 62
Financial assets 97,391 114,030 107,207
Bank loans and other borrowings 726 6,389 5,465
Lease liabilities 16,541 13,189 15,658
Trade payables and other payables 66,407 77,681 52,472
Accruals - - 6,316
Deferred and contingent consideration 25 67 67
Derivative financial instruments 438 270 941
Financial liabilities 84,137 97,596 80,919
Fair Value Amortised Cost
30 April 2025 30 April 2024 31 October 2024 30 April 2025 30 April 2024 31 October 2024
£000 £000 £000 £000 £000 £000
Trade receivables, net of loss allowance 85,749 87,643 68,256
Loan to joint venture 600 639 600
Derivative financial instruments 32 851 62 - - -
Financial assets 32 851 62 86,349 88,282 68,856
Bank loans and other borrowings - - 726 6,389 5,465
Lease liabilities - - - 16,541 13,189 15,658
Trade payables and other payables - - - 66,407 77,681 52,472
Accruals - - - - - 6,316
Deferred and contingent consideration 25 67 67 - - -
Derivative financial instruments 438 270 941 - - -
Financial liabilities 463 337 1,008 83,674 97,259 79,911
12. EARNINGS PER SHARE
Unaudited six months ended 30 April 2025 Unaudited six months ended 30 April 2024 Audited year ended 31 October 2024
Basic
Weighted average number of shares in issue (000) 23,000 22,980 23,029
Earnings per share 18.40p 14.31p 12.12p
Diluted
Weighted average number of shares in issue (000) 23,127 23,646 23,736
Earnings per share 18.30p 13.91p 11.75p
13. SHARE CAPITAL
Number of shares Nominal value
000 £000
As at 31 October 2023 22,955 5,739
Issue of shares 122 30
As at 30 April 2024 23,077 5,769
Issue of shares 51 13
As at 31 October 2024 23,128 5,782
Issue of shares - -
As at 30 April 2025 23,128 5,782
14. DIVIDENDS
During the period ended 30 April 2025, an amount of £2,745,000 (2024:
£2,701,000) was charged to reserves in in respect of equity dividends paid.
An interim dividend of 5.7p per share (2024: 5.6p) will be paid on 31 October
2025 to shareholders on the
register on 26 September 2025.
15. OTHER RESERVES
Included in Other reserves are share-based payments as the Group issues equity
settled share-based payments to certain employees. Equity settled share-based
payments are measured at fair value at the date of the grant.
The fair value determined at the grant date of the equity settled share-based
payments is expensed on a straight-line basis over the vesting period, based
on the Group's estimate of shares that will eventually vest.
The cashflow hedge reserve, which represents the IFRS9 fair values realised
through other comprehensive income. The Group operates a number of share
option and 'Save As You Earn' schemes and fair value is measured by use of a
recognised valuation model.
The expected life used in the model has been adjusted, based on management's
best estimate, for the effects of non-transferability, exercise restrictions
and behavioural considerations. At the 30 April 2025 the ESOP Trust, which is
consolidated within the Group financial statements, held 58,000 (2024: 82,000)
Ordinary Shares in the Group.
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