Powys-based agricultural supplies group Wynnstay has reported record half year results.
For the six months to the end of April this year, the Alternative Investment Market firm posted pre-tax profit of £9.56m - up 78% from £5.36m on the previous year.
Revenue also rose by 34% to £335.66m, from 2021 figures of £249.71m, however Wynnstay estimated that price inflation accounted for around £80m of this overall increase in revenue.
Basic earnings per share were up 71% to 36.99p from 21.62p in 2021.
Interim dividend was also up 8% to 5.4p reflecting a strong half year performance.
Wynnstay said the results were driven by a firm market backdrop, with strong farmgate prices boosting farmer sentiment, as well as significant one-off gains from fertiliser blending activities at Glasson caused by sharply rising natural gas prices.
The firm was overall positive on its trading outlook and said it was well-positioned to achieve growth prospects for the full year.
However, it said it does not expect these exceptional gains to be repeated in the second half.
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.”
He added: “The acquisition of Humphrey Feeds and Pullets is exciting. It significantly extends our geographic reach and opens up new growth opportunities.
“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.”
Wynnstay acquired Hampshire-based rival Humphrey Feeds and Pullets in March in a £9.5m deal.
The acquisition contributed an initial £6.4m to the business’s revenue.
The buyout is part of Wynnstay’s strategy to expand its presence in the South of England, increase its market share in free-range poultry feed, and expand its feed manufacturing capacity.
It also presents an opportunity to redevelop the empty mill at Calne to create a modern c.185 tonne capacity facility, manufacturing both poultry and ruminant feed, with organic certification.
Once complete, Wynnstay anticipates that the mill will open major opportunities for the Group to develop its multi-species feed sales in the region.
The Calne mill is expected to provide benefits in terms of its location relative to the Group’s existing feed mills in Llandsantfraid and Carmarthen, and the firm will be able to move production between the three mills to support further local sales growth and improve transport logistics.
In the agricultural division, the interim results saw revenue increase by 45% to £263.03m, with operating profit up 175% to £6.06m.
Feed volumes were up 3.25% ahead of sector average with good growth in target markets.
Grain trading volumes rose by 50%, reflecting a return to more normalised harvest and good autumn planting season, said the company.
In the specialist agricultural merchanting division, revenue was up 5% to £72.63m and operative profit was up 26% to £4.28m, with the firm noting strong sales of bagged feed, animal health care and hardware products.
