Agricultural supplies group Wynnstay said on Wednesday that trading had been strong across all core activities since June, with certain areas outperforming expectations.
Wynnstay said its second-half performance had been supported by “strong farmgate prices across almost all categories”, which continued to buoy farmer confidence and farm re-investment and lead it to now expect underlying group pre-tax profits to be “significantly ahead” of current market forecasts.
“After last year’s historically poor harvest, tonnages and yields have reverted to more normalised levels, benefiting the group’s arable activities in the important final quarter of the financial year, and grain prices remain strong,” said Wynnstay.
The AIM-listed firm stated its specialist agricultural merchanting division experienced “strong demand” from farmer customers across all major categories, while its fertiliser blending activities was on the receiving end of certain one-off benefits.
Wynnstay also highlighted that inflationary and supply chain challenges being experienced across the wider economy had been managed, with the group so far managing to avoid any “significant disruption” to its business.
“The board believes that the short and medium-term outlook for agriculture and farm commodities in the UK remains positive. As the agricultural sector adapts to the Agricultural Act 2020 and a greater focus on environmental priorities, the group remains very well-positioned to support farmers and to increase its market share,” said Wynnstay.
As of 0915 GMT, Wynnstay shares were up 5.66% at 560.0p.
