AIM: WYN
Wynnstay Group Plc
(“Wynnstay” or the “Group” or the “Company”)
Final Results
For the year ended 31 October 2022
Record results and well-positioned for FY 2023
KEY POINTS
Financial
· Record results reflect a strong trading performance and substantial one-off gains arising from macroeconomic events (which management does not believe will be repeated)
· Revenue up 42% to £713.03 m (2021: £500.39m), primarily the impact of commodity inflation
· Underlying Group PBT* (incl. one-off gains) up 98% to £22.61m (2021: £11.44m)
· Reported pre-tax profit up 92% to £21.12m (2021: £10.99m)
· Basic EPS up 86% to 82.72p (2021: 44.40p)
· Net cash up 53% to £14.15m (31 Oct 2021: £9.24m)
· Net assets up 24% to record £130.70m or £6.31 per share (2021: £105.72m /£5.25 per share)
· Successful £10.3m (net) equity placing in August 2022 supports ongoing growth plans
· Proposed final dividend of 11.60p (2021: 10.50p); total dividend up 9.7% to 17.00p (2021: 15.50p)
o 19th consecutive year of dividend increases
Operational
· Agriculture Division – revenue up 57% to £564.26m (2021: £358.96m), segmental profit contribution up 247% to £14.66m (2021: £4.22m)
o one-off gains from impact of global events on fertiliser operations, with raw material stock values at Glasson substantially boosted by natural gas prices and constricted supply, and very strong contribution from merchanted fertiliser sales even on lower volumes
o feed volumes up by 6%, ahead of national market trends
o grain marketing activity, GrainLink, traded record volumes
o total seed sales decreased, reflecting seasonal factors and exit from lower-margin cereal seed sales, but grass seed performance was ahead of national trend
· Specialist Agricultural Merchanting Division – revenue up 5% to £148.77m (2021: £141.43m) segmental profit contribution up 11% to £7.95m (2021: £7.15m)
o performance better than expected, boosted by strong bagged feed sales and efficiencies
o continued investment in depot network and staff training
· Joint Venture businesses contributed ahead of management expectations
· Humphrey acquisition is integrating well and contributed in line with management expectations at time of purchase in March 2022. It has added increased feed manufacturing capacity and further growth opportunities
· Investment in seed processing facility at Astley completed and major investment programme at feed plant at Carmarthen started
· ESG strategy supported by the establishment of a Sustainable Farm Advisory Team
Outlook
· Post period acquisition of Tamar Milling Ltd, animal feed business based in Cornwall, in November 2022, extends geographic footprint, farmer customer base and manufacturing capacity
· Board believes Wynnstay remains well-positioned to attain its growth targets despite the economic headwinds
* Underlying pre-tax profit is a non-GAAP (generally accepted accounting principles) measure and is not intended as a substitute for GAAP measures and may not be calculated in the same way as those used by other companies. Refer to Note 15 for an explanation on how this measure has been calculated and the reasons for its use.
Gareth Davies, Chief Executive of Wynnstay Group plc, commented:
“These results are exceptional and set record highs across all key financial measures. While global events have driven substantial one-off financial gains that we do not expect to repeat, the Group in any case traded very strongly, helped by strong farmgate prices and growth and efficiency initiatives.
“We also made excellent progress with our strategic growth plans. The Humphrey acquisition has significantly expanded our geographic trading area and added feed manufacturing capacity, creating further growth opportunities. Our recent acquisition in November 2022 of Tamar Milling further extends our trading footprint, and we continue to drive investment in capacity, efficiency, and staff across the Group.
“Trading in the new financial year to date has been in line with expectations. While there are economic headwinds, we remain confident of achieving our growth targets.”
Enquiries:
| Wynnstay Group Plc | Gareth Davies, Chief ExecutivePaul Roberts, Finance Director | T: 020 3178 6378 (today)T: 01691 827 142 |
| KTZ Communications | Katie Tzouliadis / Robert Morton / Dan Mahoney | T: 020 3178 6378 |
| Shore Capital (Nomad and Broker) | Stephane Auton / John More / Rachel Goldstein | T: 020 7408 4090 |