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Interim Results for the Six Months to 30th April 2023

Two wynnstay lorries on the yard

The Group has announced good overall results in softer trading conditions, with underlying performance in line with management expectations.

Financial - Key Points

  • Revenue up 22% to £409.14m (2022: £335.66m)
           -  Commodity price inflation accounted for estimated £48m of the rise
           -  Full period contributions from Humphrey and Tamar acquisitions
  • Adjusted operating profit* was £5.78m, (2022: £10.43m, including one-off fertiliser gains)
           -  H1 2022 results benefitted from the significant one-off fertiliser stock price gains. In this reporting period, the fertiliser blending activities at Glasson contended with a reversal of the abnormal spike in fertiliser raw material prices, which created one-off adverse stock realisations
  • Underlying pre-tax profit* (including an estimated £1.5m of one-off adverse Glasson fertiliser stock realisations) of £5.25m (2022: £10.21m) / Reported pre-tax profit of £5.07m (2022: £9.56m, including one-off fertiliser gains)
  • Basic earnings per share were 17.20p (2022: 36.99p)
  • Net debt (pre IFRS 16) of £10.68m (30 April 2022: £7.62m); reflected acquisition funding and high working capital requirements, which typically peak around April and reduce in H2
  • Net assets up 18% to £131.97m/£5.90 per share (30 April 2022: £111.68m/£5.50 per share)
  • Increased interim dividend of 5.50p (2022: 5.40p) - following 19 years of unbroken annual dividend growth

Operational - Key Points

  • Breadth of Group activities remains a strength, helped to balance sector variations
  • Agriculture Division - revenue of £333.57m (2022: £263.03m), operating profit contribution of £2.08m, including c.£1.5m one-off adverse Glasson fertiliser stock realisations (2022: £6.06m, including positive Glasson fertiliser stock gains)
           -  Glasson contended with a sharp reversal of fertiliser raw material prices back to pre-exceptional and more sustainable levels
           -  Feed volumes decreased by 1.3% and by 7% on a like-for-like basis, in line with the sector. Cost inflation around labour, distribution and packaging costs
           -  Arable activities benefited from record grain trading volumes and strong demand for winter and spring cereal seed inputs, while fertiliser sales were suppressed by high prices in line with national trends.
  • Specialist Agricultural Merchanting Division - revenue of £75.57m (2022: £72.63m), operating profit contribution of £3.44m (2022: £4.28m)
           -  Like-for-like sales increased, reflecting inflation
  • Acquisitions: integrating the strategically important Humphrey acquisition and smaller Tamar acquisition. In Q2, Group assumed the activities of S.G. Deakins, an agricultural inputs supplier and trader based in Powys
  • Investment programmes across Group progressed well, including Carmarthen feed mill project


Overall outlook for H2 is encouraging, with strong arable sector performance. Board expects Group to achieve its underlying growth objectives for the financial year although pressures remain

*Adjusted operating profit and Underlying pre-tax profit are non-GAAP (generally accepted accounting principles) measures and are not intended as substitutes for GAAP measures and may not be calculated in the same way as those used by other companies. Refer to Note 6 for an explanation on how these measures have been calculated and the reasons for their use.

Gareth Davies, Chief Executive of Wynnstay Group plc, commented:

"The Group performed well against softer trading conditions compared to last year and underlying performance is in line with our expectations. The extraordinary one-off gains of last year, generated by escalating fertiliser prices, were absent. Instead, our fertiliser blending operation at Glasson contended with a sharp reversal in the price of fertiliser back to the pre-exceptional and more sustainable levels of late 2021, which created one-off adverse stock realisations.

"During the first half, we continued with the integration of the Humphrey acquisition and with investment programmes across the Group to improve efficiencies and increase capacity.

"The overall outlook for the Group's performance in the second half is encouraging, with the arable sector looking strong. However, taking a cautious view, at this stage we do not expect to make up the full impact of the Glasson shortfall. Outside that one-off cost, we remain on track to achieve our targets for the year."