By Nick Knight

RECORD results, ahead of market expectations, have been recorded in its centenary year by Wynnstay, the Llansantffraid-based agricultural supplies group.

CEO Gareth Davies, who took up the role in July 2018, said that “trading for the new financial year has started in line with management expectations” and that the group is “well-placed for future growth”.

Wynnstay reports year-on-year growth recorded across all of the group’s key activities.

Revenues from continuing operations rose 18.4 per cent to £462.22 million, and profit before tax increased by 24.4 per cent to £9.53 million.

Key factors behind this performance include the recovery in farmer spending with improved farmgate prices as well as the long, dry summer which boosted second half sales of feed, seed and fertiliser in particular.

Gareth Davies said: “I am pleased to report record profit and revenue in what was Wynnstay’s Centenary Year.

“These strong results reflected the continued recovery in farmer spending with the improvement in farmgate price, also the unusually long dry Summer, which boosted feed, fertiliser and seed sales in the second half of the year. All of Wynnstay’s key activities, including sales across our network of depots, showed year-on-year growth.

“We continued to expand our trading area with a number of acquisitions.

“We now have a greater foothold in the West Country, and the acquisition of the Montrose fertiliser facility gives us our first operational presence in East Scotland.

“The UK agricultural trading backdrop remains robust although farmers have seen higher costs, particularly in feed, mostly driven by the long dry summer weather.

“While Brexit uncertainties remain, we are confident that British agriculture has positive long-term prospects, underpinned by macro-economic drivers as well as the UK’s relative lack of food self-sufficiency.

“Trading for the new financial year has started in line with management expectations. There are important trading months ahead and we will provide a further update at the Group’s annual meeting in late March.”

Net assets at 31 October 31, 2018 increased by 6.7 per cent to £91.07m (2017: £85.39m)

Proposed increased final dividend of 8.95p (2017: 8.40p), taking total for the year to 13.36p (2017: 12.60p), a rise of 6.03 per cent

Trading at the start of the new financial year is in line with expectations.