Wynnstay Group announce an interim dividend of 5.6p

DividendMax Ltd.

Wynnstay Group announce an interim dividend of 5.6p

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).

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