Trading Update

The Board of Wynnstay, the agricultural supplies and specialist merchanting group, provides an update on trading for the financial year ended 31 October 2024 ("FY24").

As highlighted in the Group's interim results, reported on 25 June 2024, the outturn for the financial year was expected to be driven by the Group's performance in the second half. With more challenging conditions being experienced in seasonally important months, it is now clear that results for the financial year will be materially lower than current market expectations and lower than the previous financial year.

There are two main factors behind this shortfall, the underperformance of the Feed division and of the fertiliser blending operation, the principal activity at Glasson Grain. The Feed division is experiencing a weaker second-half performance, driven by lower volumes relative to a market that has only grown marginally year-on-year. This mainly reflects decreased poultry feed volumes as this activity transitions away from manufacturing poultry feed at Twyford; these lower volumes are currently expected to persist for a further period.

While Glasson's fertiliser blending operation has improved from a challenging FY23, margins have been significantly impacted as market prices have fallen during the later summer and autumn months. This has been further compounded by reduced volumes in the last two months as farmers have taken a cautious approach to product purchases, pending harvest and planting outcomes, which like last year, are being impacted by heavy rains.

Other areas of the Group's arable activities have performed in line with management expectations overall. As expected, the Specialist Merchanting Division has continued to see constrained farmer spending although it has modestly outperformed the prior year to date. The contribution from Joint Ventures is below the record levels seen in the previous financial year, but in line with expectations.

Outlook

The Group has a well-established market position and benefits from a strong balance sheet and good cash flows. While there are a number of headwinds in the short-term, the Board expects a better outlook for the livestock and dairy sectors and anticipates an improved financial performance in FY25 compared to FY24. The Group will continue to focus on operational improvements and efficiencies and continue to invest for the future.

The Board expects to announce its trading results for the year ended 31 October 2024 towards the end of January 2025 and will provide a further update on current trading at that time.