Wynnstay shares are trading 2.67% higher after the group released a trading update for the year ended 31 October 2020.
The group said that results were “resilient” in an unprecedented year of challenges. Revenue fell from £490.6m in 2019 to £431.4m due to commodity deflation and reduced volumes in certain traded commodities including grain.
Pre-tax profit at Wynnstay rose 4% from £8m in 2019 to £8.37m in the year ended 31 October 2020. The proposed final dividend is 10.00p – up from 2019’s 9.40p. This takes total for the year to 14.60p, which is a 4.3% rise.
The agricultural division, in particular, saw a fall in revenue from £358.69m to £302.58m, whilst Wynnstay profits fell from £2.95m to £2.88m. Like-for-like sales were down just 1% thanks to strong sales in the second half.
Gareth Davies, the chief executive of Wynnstay, commented: “Wynnstay’s strengths have been clearly demonstrated in what was an exceptionally difficult year for both the agricultural sector and wider society. Our resilient results reflect well on our balanced business model, strong financial management and recent growth initiatives.
“The new financial year has started well, and Wynnstay’s performance is in line with management expectations. We remain focused on developing our channels to market, investing to build capacity and capability, particularly advisory, and implementing efficiencies.
“Stronger farmgate prices, the EU settlement and UK Agricultural Bill continue to buoy sentiment across the farming sector. We believe that Wynnstay is in an excellent position to help farmers adapt to new priorities set by the Agricultural Bill, and look to the future with confidence,” he added.