Wynnstay trading in line despite market volatility

Specialist agricultural merchant Wynnstay said in an update on Tuesday that trading in the first four months of its new financial year was in line with expectations across its core activities.

The AIM-traded firm, which was holding its annual general meeting, added that fertiliser operations at Glasson were still experiencing one-off gains from an “exceptional” current trading environment, that had been sustained into the new year.

Chairman Steve Ellwood said market volatility across most commodities had persisted, with material price increases seen since the start of the 2022 calendar year.

“The recent outbreak of war in Ukraine has exacerbated this, and raised concerns over the supply of fertiliser and wheat, in particular,” Ellwood told shareholders.

“Energy and transport costs also remain a challenge.

“Wynnstay has managed these difficult circumstances well, and once again the group's broad spread of activities is proving a major strength.”

Farmgate prices remained strong, Wynnstay reported, enabling its customers to absorb elements of the inflation, although higher prices were expected to curtail some demand.

Steve Ellwood noted that on 18 March, the company completed the acquisition of Humphrey Feeds and its associated pullets business for an initial consideration of £9.5m.

“As previously reported, the acquisition is expected to be immediately earnings enhancing, and furthers the group's feed activity in the growing free range egg sector, expands its manufacturing capacity, and opens up expansion opportunities in the South of England.

“The board remains very grateful for the resilience and support demonstrated by all colleagues, especially as the coronavirus pandemic has more recently caused increased levels of absence through necessary self-isolation,” Wynnstay;s chairman added.

He said the company’s investment plans were continuing, and would support growth and greater efficiencies.

“Wynnstay remains well-placed to achieve its goals for the current financial year.”

At 1237 GMT, shares in Wynnstay Group were up 1.76% at 600.4p.