Wynnstay's decent full-year figures were boosted by bolt-on acquisitions. A full 12-month contribution from Woodheads Seeds, and six months from Wrekin Grain - bought for £4m in May - added around £36m to sales and £600,000 to profits. Indeed, for the past few years, Wynnstay has been making roughly an acquisition a year and 2012 may be no exception. That's particularly so because its feed mills are operating at full capacity.
Operating profit at the agricultural supply unit grew by a solid £824,000 in the year to £3.82m. Moreover, within this division, year-on-year rises of 50 per cent and 30 per cent in wheat and fertiliser prices, respectively, boosted profit margins at raw material and fertiliser trader, Glasson. But those factors, coupled with extended grazing conditions in the autumn, hindered sales to farmers. Meanwhile, the retail division increased profits from £3.46m to £3.70m - reflecting decent sales growth in its 28 country stores.
Broker WH Ireland is cautious about current year prospects as world wheat stocks have been rebuilt following last year's Russian drought and Australian floods. So, ahead of another acquisition, it's forecasting adjusted pre-tax profit that's just £100,000 higher at £7.5m for 2012, giving EPS of 32.8p with an 8.4p dividend.
WYNNSTAY (WYN) | ||||
|---|---|---|---|---|
| ORD PRICE: | 349p | MARKET VALUE: | £58m | |
| TOUCH: | 347-352p | 12-MONTH HIGH: | 382p | LOW: 296p |
| DIVIDEND YIELD: | 2.2% | PE RATIO: | 12 | |
| NET ASSET VALUE: | 311p* | NET DEBT: | 13% | |
| Year to 31 Oct | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2007 | 157 | 3.06 | 19.6 | 5.5 |
| 2008 | 235 | 5.11 | 29.3 | 6.0 |
| 2009 | 215 | 5.12 | 26.4 | 6.5 |
| 2010 | 244 | 5.88 | 27.5 | 7.1 |
| 2011 | 346 | 6.85 | 30.2 | 7.8 |
| % change | +42 | +16 | +10 | +10 |
Ex-div: 28 Mar Payment: 30 Apr Aim: Food producers *Includes intangible assets of £15.1m, or 91p a share | ||||
