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Highlights

  • In FY24, Wynnstay reported a 22.5% YoY decline in gross profit, primarily due to lower margins in fertilizer and grain marketing
  • The company saw a 38.4% YoY increase in net cash, from GBP 23.70 million in FY23 to GBP 32.80 million in FY24
  • The company declared a final dividend of GBX 11.90 per share for FY24, up from GBX 11.75 in FY23, totaling GBX 17.5 for the year
  • Wynnstay aims for improved financial performance in FY25, driven by Project Genesis focusing on cost efficiency and margin improvement

 Wynnstay Group PLC (LSE:WYN) is a United Kingdom-based agricultural supplies company. It is engaged in supplying arable and livestock farmers with a wide range of inputs and services.

In the financial year 2024 (FY24), Wynnstay Group reported a gross profit of GBP 7.90 million, a decrease of 22.5% compared to GBP 10.20 million in FY23. This decline of GBP 2.30 million was primarily due to lower unit margins in fertilizer manufacturing and grain marketing. Adverse weather conditions significantly impacted planting and harvest yields, leading to reduced profitability in these areas.

On a positive note, the company saw a notable improvement in its net cash position in FY24, which increased by 38.4% YoY from GBP 23.70 million in FY23 to GBP 32.80 million in FY24. This growth was driven by effective cash management practices and a reduction in working capital requirements.

Inventory levels also declined in FY24, reflecting lower commodity prices, and the company successfully reduced working capital by GBP 6.8 million, from GBP 61.0 million in FY23 to GBP 54.2 million in FY24.

Recent Business Update

On 11 February 2025, the company declared a final dividend of GBX 11.90 per share for FY24, scheduled to be paid on 30 April 2025, up from GBX 11.75 in FY23. This brings the total dividend for the year to GBX 17.5.

Company Outlook

The company expects a better financial performance in FY25, supported by strategic initiatives like Project Genesis, which is designed to improve cost efficiency, streamline restructuring, and enhance profit margins. The reorganization into three new segments—Feed & Grain, Fertiliser & Seed, and Depot Merchanting—aims to optimise operations and boost profitability.

Farmgate prices across most sectors remain high, which is expected to bolster farmer confidence and increase demand for Wynnstay’s products. Additionally, a gradual recovery in fertiliser prices and improved market conditions are anticipated to positively impact sales in FY25. However, weather-related uncertainties continue to pose a significant risk to these projections.

Top 10 Shareholders

The top 10 shareholders of WYN collectively hold approximately 43.52% of the total shareholdings. Leading the group is Close Brothers Asset Management, with a significant shareholding of around 9.97%, followed closely by Milkwood Capital Limited, which holds approximately 9.90%.

Stock Information

The stock has experienced a rise of approximately 1.61% over the last three months, although it has declined by about 8.69% in the past six months. Its 52-week low and high stand at GBX 270.00 and GBX 400.00, respectively. As of 4th March 2025, the stock is trading below the average of its 52-week high-low, with a closing price of GBX 315.00.

Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference data for all price data, currency, technical indicators, support, and resistance levels is 04 March 2025. The reference data in this report has been partly sourced from EODHD/Others.

 Technical Indicators Defined

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.