Wynnstay Group are to declare an increased interim dividend of 5.6p per share (2023: 5.5p), up by 1.8% year-on-year. Dividend cover remains prudent at two times earnings.
Other financial highlights:
Wynnstay declare a resilient performance in challenging trading conditions created by:
o exceptionally wet weather conditions, which disrupted the seed planting season;
o weaker farmer sentiment; and
o falling commodity prices, which impacted manufacturing operations.
Revenue of £328.5m (2023: £409.1m) with the year-on-year reduction driven by commodity price deflation, which accounted for c. £69.0m (86%) of the decrease.
Gross profit down slightly at £40.2m (2023: £41.7m) - reflecting lower activity, however unit margins across categories were broadly maintained.
Adjusted operating profit of £4.7m (2023: £5.8m).
Adjusted pre-tax profit of £4.8m (2023: £6.0m). Reported pre-tax profit of £4.4m (2023: £5.5m).
Basic earnings per share of 14.3p (2023: 19.3p).
Net cash at 30 April 2024 was £18.5m (2023: net debt of £7.3m) and benefited from soft commodity price deflation. The Group's annual working capital requirement is typically highest at this point.
Net assets increased to £136.3m/£5.91 per share (2023: £132.4m/£5.87 per share).
