Wynnstay delivers record H1 performance
Agricultural products supplier Wynnstay Group reported record interim results on Tuesday, ahead of original management expectations.
Wynnstay said interim revenues were up 34% at £335.6m, with significant inflation accounting for roughly £80.0m of the increase, while underlying pre-tax profits surged 85% to £10.2m and basic earnings per share rose 71% to 36.99p.
The London-listed group also hiked its interim dividend by 8% to 5.40p.
Wynnstay said its strong first-half performance was a result of a firm market backdrop, with strong farmgate prices boosting farmer sentiment, and significant one-off gains from fertiliser blending activities at Glasson, caused by sharply rising natural gas prices.
Net debt on a pre-IFRS 16 basis had increased to £7.62m as of 30 April, a marked difference when compared to the group's £750,000 net cash balance at the same time a year earlier, reflecting acquisition funding and higher working capital requirements due to inflation, while net assets rose 10.5% to £111.68m.
Looking forward, Wynnstay's board believes the group to be well-placed to achieve growth prospects for the full year but noted that the "exceptional gains" of the first half were not expected to be repeated in the second.
Chief executive Gareth Davies said: "These record interim results have been underpinned by a favourable sector backdrop, with strong farmgate prices across most sectors and positive farmer sentiment, as well as significant one-off gains in our fertiliser blending activity.
"While there are still challenges with cost inflation and supply chain pressures, sector sentiment remains strong, and we are confident about achieving our growth goals for the full year."
As of 0830 BST, Wynnstay shares were up 1.41% 648.0p.
Reporting by Iain Gilbert at Sharecast.com