Squeezed margins for UK farmers led to flat full-year revenues at agricultural products group Wynnstay (WYN), while underlying pre-tax profit rose less than 2 per cent to £8.6m.
In fact, the core agricultural division - responsible for three-quarters of group sales - saw its revenue fall by more than 4 per cent year on year, while the operating profit here slumped 22 per cent to £3.8m. That was mainly down to margin pressure on agricultural inputs and lower-than-expected market activity in fertiliser and grain. Significantly, mild weather conditions led to subdued feed demand in the first half. Management, however, is hopeful that output prices will rebound as global food demand increases.
It's also hoped that acquisitions into the retail division will provide further support. Indeed, and buoyed by acquisitions, the specialist retail division - which includes the agriculturally-biased Wynnstay Stores, Just for Pets and Youngs Animal Feeds - increased revenue by 16 per cent to £104.6m, while the unit's operating profit rose 10 per cent to £4.9m.
Broker Shore Capital expects adjusted pre-tax profit of £9m for 2015, giving adjusted EPS of 36.7p (from £8.5m and 34.6p in 2014).
WYNNSTAY (WYN) | ||||
---|---|---|---|---|
ORD PRICE: | 600p | MARKET VALUE: | £115m | |
TOUCH: | 595p-605p | 12-MONTH HIGH/LOW: | 681p | 540p |
DIVIDEND YIELD: | 1.7% | PE RATIO: | 17 | |
NET ASSET VALUE: | 404p | NET CASH: | £2.75m |
Year to 31 Oct | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
---|---|---|---|---|
2010 | 244 | 5.9 | 27.5 | 7.1 |
2011 | 346 | 6.9 | 30.2 | 7.8 |
2012 | 376 | 7.8 | 35.0 | 8.5 |
2013 | 413 | 8.0 | 36.4 | 9.3 |
2014 | 414 | 8.5 | 35.3 | 10.2 |
% change | - | +6 | -3 | +10 |
Ex-div: 26 Mar Payment: 30 Apr *Includes intangible assets of £17.3m, or 91p a share |