REG - Wynnstay Group PLC - Trading Update

WynnstayAnnouncement

06/09/2022 07:00

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RNS Number : 3469Y  Wynnstay Group PLC  06 September 2022

 

 

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF THE MARKET
ABUSE REGULATION (EU) 596/2014 WHICH FORMS PART OF UK LAW BY VIRTUE OF THE
EUROPEAN UNION (WITHDRAWAL) ACT 2018 ("MAR"). IN ADDITION, MARKET SOUNDINGS
(AS DEFINED IN MAR) WERE TAKEN IN RESPECT OF CERTAIN OF THE MATTERS CONTAINED
IN THIS ANNOUNCEMENT, WITH THE RESULT THAT CERTAIN PERSONS BECAME AWARE OF
SUCH INSIDE INFORMATION, AS PERMITTED BY MAR. UPON THE PUBLICATION OF THIS
ANNOUNCEMENT, THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC
DOMAIN AND SUCH PERSONS SHALL THEREFORE CEASE TO BE IN POSSESSION OF INSIDE
INFORMATION.

6 September 2022

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 current financial year ending 31
October 2022.

 

The trading backdrop has continued to be strong across many core activities.
With the benefit of good weather conditions, the 2022 UK harvest started early
and is now nearly complete, giving the Group much greater visibility than
usual, at this stage of the year, on the likely outturn of the seasonally
important fourth quarter. As a result of these factors, it is now clear that
the Group's trading results for the financial year will be significantly ahead
of current market forecasts.

 

A major driver of the outperformance are further gains in the Glasson
fertiliser activity, created from rising and volatile raw material prices. The
continuing elevated prices, particularly for ammonium nitrate, have also
increased trading results across all the Group's fertiliser activities. Recent
record prices for natural gas have caused European fertiliser manufacturers to
announce temporary production suspensions, and the UK's only manufacturer of
ammonium nitrate, CF Industries, recently announced the permanent closure of
its Cheshire plant and the temporary suspension of ammonia production at its
Billingham plant. These decisions are causing further upward pressure on
fertiliser prices, with available urea products increasing by around 10% in
the last two weeks. While these market conditions will temper demand, they
have also generated further stock gains for the Glasson business.

 

The early UK harvest is benefitting the Group's grain trading volumes, which
are significantly higher than in recent years. Early cereal seed sales in the
last few weeks have been encouraging and with attractive commodity prices and
continuing favourable planting conditions, the outlook for the Group's arable
performance is positive.

 

Demand for feed is unseasonally strong. This mainly reflects the reduced
availability of forage following the hot summer, but is also supported by
higher milk prices, which has encouraged demand.

 

Looking ahead, management is highly conscious of inflationary pressures, which
will increase costs for the business, farmers, and the end consumer. Given the
significantly uncertain macroeconomic background, the Board therefore believes
that it is prudent, at this stage, to leave its expectations for the next
financial year unchanged.

 

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 / John More       T: 020 7408 4090

 

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