Wynnstay Group plc
(“Wynnstay” or “the Group” or “the Company”)
Agricultural supplies and services group
Final Results for the year ended 31 October 2024
| Key Points | 2024 | 2023 |
| Revenue | £613.1m | £735.9m |
| Gross profit | £79.2m | £79.9m |
| Adjusted operating profit1 | £7.9m | £10.2m |
| Adjusted profit before taxation2 | £7.6m | £10.3m |
| Adjusted earnings per share3 | 23.78p | 36.17p |
| Net assets /net assets per share | £134.8m/ 583p | £135.2m/ 589p |
| Net cash4 | £32.8m | £23.7m |
| Total dividend per share | 17.5p | 17.25p |
| Statutory results | ||
| Operating profit | £4.6m | £8.8m |
| Profit before taxation | £4.1m | £8.7m |
| Earnings per share | 12.12p | 30.74p |
| Net cash / (debt) – full IFRS 16 | £17.2m | £10.7m |
1Adjusted operating profit excludes amortisation of acquired intangibles, share based payment expenses, losses on mark to market of derivatives and non-recurring items.
2Adjusted profit before taxation excludes amortisation of acquired intangibles, share based payment expenses, 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 cash / (debt) excluding IFRS 16 leases
Financial
- Results in line with revised expectations and reflect challenging market conditions.
- Revenue decreased to £613.1m (2024: £735.9m) with commodity deflation, which accounted for c. £117.9 (96%) of the reduction.
- Gross profit of £79.2m (2023: £79.9m), with lower activity and decreased unit margins in fertiliser manufacturing and grain marketing.
- Non-recurring items of £2.3m (2023: £0.1m) related mainly to business reorganisation expenses and impairment of assets.
- Robust balance sheet with net cash at £32.8m (2024: £23.7m).
- Proposed final dividend of 11.90p (2023: 11.75p), reflecting good cash generation and Board’s confidence of future prospects. Takes total dividend for the year to 17.5p (2023: 17.25p).
Operational
- The Group’s operating activities are now presented in three segments to reflect our new organisational structure and provide greater insight into the Group’s performance.
- Feed and Grain – adjusted profit before tax of £0.7m (2023: £5.7m): manufactured feed volumes 2.7% lower; mostly reflected lower poultry feed volumes as manufacturing transitioned away from Twyford site. Very poor 2024 harvest resulted in reduced volumes available for grain trading.
- Fertiliser and Seed – adjusted profit before tax of £1.4m (2023: £0.8m): seed and fertiliser sales impacted by prolonged wet weather, which affected both autumn and spring planting seasons; manufactured fertiliser margins below target levels as raw material prices continued to track back to pre-crisis (2022) levels.
- Depot Merchanting – adjusted profit before tax of £5.5m (2023: £3.8m): footfall and transaction levels in line with prior year. Margin improvement more than offset operational cost increases. Higher labour and energy costs partly offset by efficiency initiatives.
CEO appointed and “Project Genesis” launched
- Alk Brand joined as CEO on 1 October 2024.
- Project Genesis launched; objective is to establish a more efficient operating model that will drive higher margins, profits and cash generation and support the Group’s wider growth plans and value creation.
- A new integrated divisional structure has been created: its implementation is already under way, including senior management changes.
- Three-year timetable with initial benefits expected to be felt in FY25.
Outlook
- Farmgate prices across most sectors are robust, which will support farmer sentiment despite continuing uncertainties around the transition in governmental support policies.
- Group is expected to deliver a stronger performance in FY25 than in FY24, helped by operational improvements already made.
Alk Brand, Chief Executive Officer of Wynnstay Group plc, commented:
“It was a disappointing year for the Group, reflecting a number of challenges, including adverse weather, which impacted planting and growing conditions, falling commodity prices and underperformance in certain areas of the business. More positively, investments progressed, cash flows were good, and the Group’s balance sheet remains strong.
“Together with the Board, I have reviewed the business, and we have launched Project Genesis. It is a three-year transformation programme, which is focused on establishing a more efficient operating model to drive performance. We are confident that this will better position Wynnstay for future growth and long-term success, and create substantial value for shareholders.“Trading in the new financial year is in line with management expectations, and we anticipate an improved performance over last year, helped by the actions we have already taken.“