REG - Wynnstay Group PLC - Trading Update

WynnstayAnnouncement

24/11/2021 07:00

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RNS Number : 3325T  Wynnstay Group PLC  24 November 2021

 

 

24 November 2021

AIM: WYN

 

WYNNSTAY GROUP PLC

("Wynnstay" or "the Group")

 

TRADING UPDATE

 

The Board of Wynnstay, the agricultural supplies group, is pleased to provide
the following update on trading for the financial year ended 31 October 2021.

 

Trading Update

 

Trading since June, when the Group reported interim results, and in particular
in the key trading month of October, has been strong across all core
activities. Certain areas have outperformed the Board's expectations
especially fertilizer blending activities, which experienced certain one-off
benefits, and joint venture activities. As a result, the Board now expects
that underlying Group pre-tax profit* for FY 2021 will be significantly ahead
of current market forecasts.

 

The second half performance has been supported by strong farmgate prices
across almost all categories, which has continued to buoy farmer confidence
and farm re-investment. After last year's historically poor harvest, tonnages
and yields have reverted to more normalised levels, benefiting the Group's
arable activities in the important final quarter of the financial year, and
grain prices remain strong. The Specialist Agricultural Merchanting Division
experienced strong demand from farmer customers across all major categories.

 

The inflationary and supply chain challenges being experienced across the
wider economy, including energy, distribution, fuel and labour costs, are
being managed, and to date Wynnstay has avoided any significant disruption to
its business. The Board expects to be able to continue to manage these
operational and cost challenges effectively, although some imported product
lines have experienced delays and this may continue.

 

The Board believes that the short and medium term outlook for agriculture and
farm commodities in the UK remains positive. As the agricultural sector adapts
to the Agricultural Act 2020 and a greater focus on environmental priorities,
the Group remains very well-positioned to support farmers and to increase its
market share.

 

 

*underlying Group pre-tax profit excludes non-recurring items, share based
remuneration payments and adds back the Group's share of tax incurred by joint
ventures.

 

Enquiries:

 

 Wynnstay Group plc                Gareth Davies, Chief Executive     T: 01691 827 142

                                   Paul Roberts, Finance Director

 KTZ Communications                Katie Tzouliadis / Dan Mahoney     T: 020 3178 6378

 Shore Capital (Nomad and Broker)  Stephane Auton / Patrick Castle /  T: 020 7408 4090

                                   John More

 

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