The lifting of Brexit uncertainties and strong farmgate prices have helped Powys-based agricultural supplies group Wynnstay to post record revenues and profits.
Recording financial result for 2021, the Alternative Investment Market group said that as well as a Brexit deal last year’s good harvest also benefitted its arable and fertiliser blending activities.
With a big rise in commodity price inflation, revenues for the year were up 16% to £500.39m, with underlying profits up 37% to £11.44m. The figures were significantly ahead of initial market expectations
Trading in its new financial year has started in line with expectations with Wynnstay saying it is well positioned to achieve its growth objectives for the year.
It is proposing a final dividend of 10.50p (2020: 10p), which would give a total dividend up 6% of 15.50p. It is the 18th consecutive year of dividend increases.
Gareth Davies, chief executive of Wynnstay Group said: “These record results reflect the significantly improved trading environment as well as our initiatives to drive growth, productivity and efficiency. Strong farmgate prices and the lifting of uncertainties around Brexit and future financial support have promoted a return to farm investment.
"Results also benefited from a strong second half across the Group, especially for our arable operations. The 2021 harvest was good, with tonnages and yields reverting to more normal levels, and our fertiliser blending activities generated a windfall gain in a highly disrupted marketplace.
“Trading in the new financial year has begun well, in line with our expectations. We have a clear growth plan with strategic investment programmes under way, and new opportunities. While there are challenges with rising costs, we are confident that Wynnstay is well-positioned to achieve its growth objectives for the year, and view prospects for continuing development very positively.."
In a note, brokers Shore Capital, said Wynnstay had again surpassed its upgraded estimations. It added: “We believe the group is structurally and operationally in a strong place especially given the favourable market backdrop and adapting spending patterns suggesting to us the confidence in the future of UK farming and agriculture.
"Wynnstay is well-placed in our view to take advantage of the improving market conditions, given its broad spectrum of activities and strong asset backing.”
