Agricultural products supplier Wynnstay Group (LON:WYN) reported a 16 percent rise in first-half profit, as confidence returns to the market.

Profit for the six months to April rose to £4.9 million, recording growth across both its agricultural and retail divisions. Revenue from continuing operations rose 10.3 percent to £218.5 million.

Revenue from its agricultural division rose 9.9 per cent to £160.1 million, while operating profit saw a 33 per cent boost to £2 million.

The group attributed the strong performance to a return in “farmer confidence”. The company declared an interim dividend of 4.41p per share, up 5% on-year.

CEO Ken Greetham, who is set to retire from the group in early July, said:

“Wynnstay’s interim results are encouraging, with the group’s stronger performance reflecting the long-awaited upturn for the agricultural sector, which started to come through in 2017.

“The continuing improvement in farmgate prices has boosted farmer confidence, and demand across most product categories was higher year-on-year. Demand for feed also benefited from the prolonged winter.

“Trading remains in line with overall budgets and the group is well-positioned to meet current market expectations for the full year.”

Shares in Wynnstay rose 1.97 percent in early trading to hit 466.50 (0847GMT).