Wynnstay Group PLC Trading Update & Organisational Change (6435F)
18 Noviembre 2020 - 1:00AM
UK Regulatory
TIDMWYN
RNS Number : 6435F
Wynnstay Group PLC
18 November 2020
18 November 2020
AIM: WYN
WYNNSTAY GROUP PLC
("Wynnstay" or "the Group")
TRADING UPDATE
&
ORGANISATIONAL CHANGE
The Board of Wynnstay, the agricultural supplies group, is
pleased to provide the following update on trading for the
financial year ended 31 October 2020.
As an essential supplier to the farming community, the Group has
continued to maintain its operations across all its activities
during the recent 'fire-break' lockdown in Wales and since the
introduction of new coronavirus-related restrictions in England,
which took effect on 5 November 2020.
Trading Update
Overall trading since June, when the Group reported interim
results, has been stronger than anticipated, especially in
September and October. This is across both the Agriculture and
Specialist Agricultural Merchanting Divisions. As a result, the
Board now expects that underlying Group pre-tax profit* for FY 2020
will be significantly ahead of current market forecasts.
While the anticipated difficulties in Arable activities
materialised in the second half of the financial year, trading
across other activities has been resilient. As expected, the poor
planting conditions in autumn 2019 resulted in a historically low
yield from the 2020 UK cereal harvest. Wheat volumes declined by an
estimated 40% on the previous year, limiting volumes available for
the Group's grain trading operation. Seed sales were also lower,
with farmers using last year's unplanted product. However, the
Group has benefited from better-than-expected feed sales in
September and October. Sales from the Specialist Agricultural
Merchanting depot network also performed well, helped by a stronger
red meat sector.
More generally, t he Board believes that the outlook for
agriculture and farm commodities in the UK remains positive despite
uncertainties around Brexit and that the Group is well placed to
take advantage of the opportunities that are expected to present
themselves.
Non-recurring charges in the Group's results for the financial
year will include rationalisation costs associated with the closure
of the Youngs Animal Feeds distribution centre in Huyton,
Merseyside and a specialist agricultural merchanting depot in
Salisbury, Wiltshire, as well as the closure of the seed plant in
Selby, Yorkshire following its lease expiry.
*u nderlying Group pre-tax profit excludes non-recurring items,
share based remuneration payments and adds back the Group's share
of tax incurred by joint ventures .
Board and Organisational Changes
During the period, the Board has reviewed the Group's
organisational structure and is implementing a number of changes
that will support future growth and investment plans. These changes
include the creation of new roles with new areas of responsibility,
as well as revised reporting lines.
The new organisational structure will not include the Board
position of Agricultural Director. Andrew Evans will therefore step
down from the Board with effect from 1 December 2020. However, he
remains a key member of the senior management team and will take up
his new role of Group Operations and Feed Director and lead the
reorganisation at senior executive level. The Directors would like
to thank Andrew for his valued contribution to the Board and for
his continued commitment to the growth of the business. The Board
also looks forward to receiving his ongoing input at senior
executive level.
Further details of the reorganisation will be provided with the
Group's full year results.
Date of Final Results
The Group expects to announce its results for the year ended 31
October 2020 towards the end of January 2021 and will also provide
a further update on current trading at that time.
Enquiries:
Wynnstay Group plc Gareth Davies, Chief T: 1691 827
Executive 142
Paul Roberts, Finance
Director
KTZ Communications Katie Tzouliadis / Dan T: 020 3178
Mahoney 6378
Shore Capital (Nomad Stephane Auton / Patrick T: 020 7408
and Broker) Castle / 4090
John More
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END
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