Wynnstay FY results seen 'significantly ahead' of current forecasts

6th Sep 2022 07:32

(Sharecast News) - Agricultural supplies group Wynnstay said on Tuesday that trading had continued to be "strong" across many of its core activities year-to-date, with full-year results now expected to easily beat current market forecasts.

Wynnstay stated that with the benefit of good weather conditions, the UK's 2022 harvest started early and was now nearly complete, giving the firm "much greater visibility than usual" on the likely outturn of the "seasonally important" fourth quarter.

The AIM-listed group said another major driver of its outperformance was further gains in Glasson fertiliser activity, created from rising and volatile raw material prices.

Wynnstay also added that demand for feed was "unseasonally strong", mainly reflecting the reduced availability of forage following the hot UK summer but also supported by higher milk prices.

"As a result of these factors, it is now clear that the group's trading results for the financial year will be significantly ahead of current market forecasts," said Wynnstay.

However, Wynnstay said it was "highly conscious" of inflationary pressures, which will increase costs for the business, farmers, and the end consumer.

"Given the significantly uncertain macroeconomic background, the board, therefore, believes that it is prudent, at this stage, to leave its expectations for the next financial year unchanged," it said.

As of 1025 BST, Wynnstay shares were up 4.68% at 604.0p.

Reporting by Iain Gilbert at Sharecast.com