Wynnstay posts jump in adjusted profits despite lower revenues
Shares in agricultural supplies and services group Wynnstay Group Plc dipped on Monday after full-year results from the company met recently upgraded market expectations, with adjusted profits growing by more than a fifth despite a dip in revenues.
The company, which provides animal feeds and health products along with agricultural equipment and hardware, said results reflected its recent operating changes, including improved pricing and product mix, stronger margins and tighter cost control.
Adjusted pre-tax profit rose to £9.2m over the 12 months to 31 October, up 21.1% from the year before, though statutory figures - which include one-off charges of £5.9m arising from restructuring activity, among other items - showed a 14.6% drop to £3.5m.
Group revenues fell 4.8% to £583.4m due to lower manufactured feed and traded feed raw material activity as well as lower grain prices following a weak UK harvest.
The company ended the year with net cash of £25.7m, down from £32.8m the year before, but still increased its final dividend to 12.1p per share, increasing the full-year payout by 1.7% to 17.8p.
"FY25 has been a strong year for Wynnstay, with improved profitability and early, tangible benefits from the work completed in Project Genesis to simplify and strengthen the operating model," said chief executive Alk Brand.
Looking ahead, the company said that the new financial year had started in line with expectations.
"We enter FY26 with a clear strategy, strong operational capability and a robust balance sheet. Trading in the early part of the new financial year is in line with the board's expectations, and we look forward with confidence as we progress into Wynnstay Strategy Genesis and pursue sustainable growth and improved returns," Brand said.
Shares were down 0.6% at 400p by 1101 GMT, having fallen 1.4% earlier on.
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