Wynnstay optimistic as expectations remain unchanged despite trading challenge

The Llansantffraid-based group, which has sites and customers across the region, held its AGM this week.

Executive Chairman, Steve Ellwood admitted trading conditions have remained challenging, driven by a combination of the persistent wet weather conditions and weak farmer confidence which, he said "has been weighed down by the uncertainties over new governmental support schemes and weaker farmgate prices for certain outputs, including milk."

But he added: “The Group has managed effectively these challenges as well as increased energy and labour costs.

"The Group’s working capital position has improved year-on-year, helped by commodity input price deflation.

“In recent weeks, there has been an uplift in milk prices, which is encouraging, and we expect the fertiliser sales that were held back by the wet weather conditions to come through in late spring.

"As anticipated, there has been strong demand for spring seed, after the failure of the winter sowing season, but stock availability has been limited," he said. "“The spring months represent our busiest period and, at this point in time, the Board’s expectations for the full year remain unchanged.

“The Group’s strong balance sheet, balanced business model, and good cash generation continue to provide significant advantages in the current market and we remain focused on delivering our strategic growth ambitions.”