Half-year profits at farm feed company Wynnstay jump to £5.5m
Profits at agriculture feed firm Wynnstay have jumped to £5.5m over the past six months as bosses hailed the success of the firm's efficiency programme.
The group, which is based in Llansantffraid near Oswestry, saw revenue drop slightly to £304.9m for the six months up to May, down from £328.5m in the previous year.
The firm put the drop in revenue down to reduced feed and grain trading activity, and lower commodity prices.
But a three-year efficiency drive known as "Project Genesis" was starting to bear fruit, with the firm hailing efforts to establish a "more efficient" operating model, which has begun to improve profits and cash generation at the firm.
In a statement to the London Stock Exchange, Wynnstay Group PLC said "significant management and operational changes" made as part of the project would support their wider growth plans
"The Group has delivered a strong recovery in the first half, with the improved profitability reflecting the benefits of our operational initiatives," said Alk Brand, Chief Executive Officer of Wynnstay Group Plc.
"The new management team is now in place and is delivering improvements, supported by a clear plan and strong leadership focus. Project Genesis is progressing well and, together with ongoing investments, supports our ambitions to create a stronger, fitter business, which provides our customers with the highest service levels and our shareholders with improved returns.
"Current trading is encouraging, and the Group remains well-positioned to achieve market expectations for the full year."
Wynnstay Group manufactures and supplies a wide range of feeds and animal nutrition products for the agricultural sector, as well as operating a network of depots for farmers and rural communities.
The company operates 51 stores across the UK, including ten in Shropshire and Powys. The firm also operates a seed processing plant in Astley near Shrewsbury, which saw expansion plans approved last year.
Steve Ellwood, Chairman of Wynnstay Group Plc, said: "We now have a refreshed executive management team in place, which is focused on integration, execution, and driving shareholder returns. Project Genesis is firmly established and progressing well, and we expect to complete the development of our Group growth strategy in the second half.
"It will complement and build on the foundations already laid. The Group has a strong balance sheet and solid financial platform, and we are investing in initiatives that will benefit our customers and drive earnings per share and long-term value for shareholders."
