UK: Wynnstay Announces Bullish Profits Forecast
Wynnstay, the agricultural and retail group, said trading in the second half of the financial year across Wynnstay's agricultural and retail operations has continued strongly.
This follows a very buoyant first half, which benefited from an outperformance by the Group's raw materials trading activity and increased feed and fertiliser volumes.
The company said it now expects profit before taxation and earnings per share for the financial year to be substantially ahead of consensus market forecasts for the financial year to 31st October 2008.
Within Wynnstay's agricultural businesses, animal feed sales volumes to the end of September were ahead of last year and were further increased by the acquisition, in August 2008, of the remaining 50% of the issued share capital of Welsh Feed Producers Limited not already owned.
Fertiliser sales remained extremely strong despite some tailing off in demand with the poor weather at the end of the summer. Both feed and fertiliser margins improved as higher raw material costs were recovered in the market place.
The Group's raw material trading business benefited from early buying and subsequent higher selling prices, but these benefits are unlikely to be repeated. However, the tight supply situation in the UK suggests that margins in the Group's added value manufacturing activities should remain above historical levels.
Looking ahead, the general agricultural and commodity outlook remains positive. Therefore, while the company does not expect that certain one-off benefits experienced in the current financial year, including very buoyant raw materials trading, will be repeated in the financial year ending 31st October 2009, the company remains confident about growth prospects into 2009.
Results for the year will be reported in mid January 2009.
By mid-morning shares in Wynnstay were up 15.5p, or 7.73%.
This follows a very buoyant first half, which benefited from an outperformance by the Group's raw materials trading activity and increased feed and fertiliser volumes.
The company said it now expects profit before taxation and earnings per share for the financial year to be substantially ahead of consensus market forecasts for the financial year to 31st October 2008.
Within Wynnstay's agricultural businesses, animal feed sales volumes to the end of September were ahead of last year and were further increased by the acquisition, in August 2008, of the remaining 50% of the issued share capital of Welsh Feed Producers Limited not already owned.
Fertiliser sales remained extremely strong despite some tailing off in demand with the poor weather at the end of the summer. Both feed and fertiliser margins improved as higher raw material costs were recovered in the market place.
The Group's raw material trading business benefited from early buying and subsequent higher selling prices, but these benefits are unlikely to be repeated. However, the tight supply situation in the UK suggests that margins in the Group's added value manufacturing activities should remain above historical levels.
Looking ahead, the general agricultural and commodity outlook remains positive. Therefore, while the company does not expect that certain one-off benefits experienced in the current financial year, including very buoyant raw materials trading, will be repeated in the financial year ending 31st October 2009, the company remains confident about growth prospects into 2009.
Results for the year will be reported in mid January 2009.
By mid-morning shares in Wynnstay were up 15.5p, or 7.73%.
