A transformation plan at Wynnstay has continued to reap rewards as profits rose in the first half at the agriculture supplies group.
Wynnstay said the benefits of ‘Project Genesis’, which is in the second year of a three-year plan, were increasingly evident through improved operational efficiency, stronger commercial execution and a more focused cost base, resulting in higher profitability, improved cash generation and a strengthened balance sheet.
Despite challenging agricultural market conditions and ongoing inflationary pressures across labour, logistics and energy, pre-tax profits for the six months to 30 April increased 12% to £6.2m.
Wynnstay said there was no disruption to fertiliser supply chains experienced in the first half.
The short-term volatility in fertiliser markets in the wake of the Iran war gave the group a modest benefit to profitability through “well-managed purchasing positions”. Wynnstay added the impact of the geopolitical developments in the Middle East was significantly lower than the fallout from the conflict in Ukraine in 2022.
Revenues at the group were flat in the period at £304.1m.
“The group is becoming more efficient, more resilient and better positioned to deliver sustainable growth across a range of market conditions,” chairman Steven Esom said
“With a strong balance sheet, a progressive dividend and an encouraging start to trading in the second half, the board remains confident in the group’s outlook and ability to deliver further progress.”
CEO Alk Brand added the first half provided clear evidence that Project Genesis was delivering.
“Trading in the second half has continued in line with our expectations and we remain confident of delivering full-year results in line with market expectations, representing a further improvement on FY25.”
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