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 30 April 2025 (unaudited)
6 months to 30 April 2024 (unaudited)
Revenue
£304.9m
£328.5m
Gross profit
£42.0m
£39.2m
Adjusted operating profit1
£5.2m
£3.7m
Adjusted profit before taxation2 ("PBT")
£5.4m
£3.8m
Adjusted earnings per share3
18.1p
12.6p
Net cash4
£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
1Adjusted operating profit excludes amortisation of acquired intangibles, share-based payment expenses, gains or losses on mark to market of derivatives and non-recurring items.
2Adjusted 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.
4Net (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 Rob Thomas, Chief Financial Officer
T: 020 3178 6378 (Today) 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) Henry Willcocks (Corporate Broking)
T: 020 7408 4090
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. 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 profit1
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 taxation2
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
1Adjusted operating profit excludes amortisation of acquired intangibles, share-based payment expenses, gains or losses on mark to market of derivatives and non-recurring items.
2Adjusted 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 £'000
Unaudited 30 April 2024 £'000
Audited 31 October 2024 £'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 capital
Share premium
Share-based payment
Cashflow hedge reserves
Other reserves
Retained 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 and Grain
Arable
Stores
Total
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 and Grain
Arable
Stores
Total
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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