REG - Wynnstay Group PLC - Trading Update

WynnstayAnnouncement

02/10/2024 07:00

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RNS Number : 5569G  Wynnstay Group PLC  02 October 2024

AIM: WYN

Wynnstay Group plc

("Wynnstay" or the "Group" or the "Company")

 

Trading Update

 

The Board of Wynnstay, the agricultural supplies and specialist merchanting
group, provides an update on trading for the financial year ended 31 October
2024 ("FY24").

 

As highlighted in the Group's interim results, reported on 25 June 2024, the
outturn for the financial year was expected to be driven by the Group's
performance in the second half. With more challenging conditions being
experienced in seasonally important months, it is now clear that results for
the financial year will be materially lower than current market expectations
and lower than the previous financial year.

 

There are two main factors behind this shortfall, the underperformance of the
Feed division and of the fertiliser blending operation, the principal activity
at Glasson Grain. The Feed division is experiencing a weaker second-half
performance, driven by lower volumes relative to a market that has only grown
marginally year-on-year. This mainly reflects decreased poultry feed volumes
as this activity transitions away from manufacturing poultry feed at Twyford;
these lower volumes are currently expected to persist for a further period.

 

While Glasson's fertiliser blending operation has improved from a challenging
FY23, margins have been significantly impacted as market prices have fallen
during the later summer and autumn months. This has been further compounded by
reduced volumes in the last two months as farmers have taken a cautious
approach to product purchases, pending harvest and planting outcomes, which
like last year, are being impacted by heavy rains.

 

Other areas of the Group's arable activities have performed in line with
management expectations overall. As expected, the Specialist Merchanting
Division has continued to see constrained farmer spending although it has
modestly outperformed the prior year to date. The contribution from Joint
Ventures is below the record levels seen in the previous financial year, but
in line with expectations.

 

Outlook

 

The Group has a well-established market position and benefits from a strong
balance sheet and good cash flows. While there are a number of headwinds in
the short-term, the Board expects a better outlook for the livestock and dairy
sectors and anticipates an improved financial performance in FY25 compared to
FY24. The Group will continue to focus on operational improvements and
efficiencies and continue to invest for the future.

 

The Board expects to announce its trading results for the year ended 31
October 2024 towards the end of January 2025 and will provide a further update
on current trading at that time.

 

Enquiries:

 

 Wynnstay Group plc                Steve Ellwood, Chairman                                              T: 01691 827 142

                                   Alk Brand, Chief Executive Officer

                                   Rob Thomas, Chief Financial Officer

 KTZ Communications                Katie Tzouliadis / Robert Morton                                     T: 020 3178 6378

 Shore Capital (Nomad and Broker)  Stephane Auton / Tom Knibbs / Rachel Goldstein (Corporate Advisory)  T: 020 7408 4090

                                   Henry Willcocks (Corporate Broking)

 

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