Wynnstay weathers year marred by deflation

Wynnstay posted its final results for the year to 31 October on Wednesday, calling them “satisfactory” and in line with market expectations, despite a tough trading environment.

The AIM-traded company reported group revenue of £368.14m, down from £377.38m in the prior year, which the board said was impacted by deflation.

Profit before tax was £7.29m, down from £8.34m, with underlying pre-tax profit at £7.37m, falling from £9.05m.

Earnings per share dropped to 30.01p from 34.66p, although net cash increased to £4.28m from £2.14m, helped by “strong” cash generation.

Net assets increased to £86.95m from £82.86m.

The board proposed a final dividend of 8.00p, taking the total payout for the year to 12.00p - an increase of 8.11%.

“Our results are in line with market expectations and reflect the tough trading environment, which stemmed from an imbalance in world markets and has led to low output prices for farmers, most apparent in the dairy sector,” said chief executive Ken Greetham.

“Despite the backdrop, we continued to invest significantly across the Group to support efficiencies and future growth plans, and have further extended our trading reach in the South of England through our Wynnstay Store outlets.”

Greetham said that over recent months, there has been a recovery in output prices for farmers - mainly as a result of the devaluation of sterling - and the new financial year started in line with management expectations for the company.

“We remain optimistic of further improvement and are focused on continuing to develop Wynnstay's market presence.

“The group's breadth of products and balanced spread of activities remains key strengths.”