A trading update from the Wynnstay Group expects full year performance in the year to 31st October 2025 to be ahead of expectation with an adjusted profit before tax figure of approximately £9.0 million. This follows the series of actions taken to address a sharp fall in profitability in the previous full year. Preliminary figures are due for release in early February.
Chief executive Alk Brand, who took up his post in October 2024, introduced Project Genesis, a three-year Group restructuring programme which he says is already showing results through a sharper commercial focus, improved pricing discipline, strengthened margins and better operational efficiencies across the Group. He adds that the behavioural changes implemented this year are embedding a more disciplined operating model which establishes a stronger platform for further growth.
The growth is across all three divisions. Feed & Grain delivered higher year-on-year profitability. While feed volumes were down, reflecting lower poultry volumes, stronger margins and firm cost control led to improved results. Investment in an additional 20,000 tonnes of capacity at the Carmarthen feed mill is almost complete, while cost savings followed the planned closure of the Twyford mill in Hampshire.
Grain trading was affected by the relatively small 2024 wheat harvest and continued low wheat prices during the period which affected volumes and margins. The integration of all grain and feed material trading activities into GrainLink was completed on schedule.
The Arable division also saw increased profits, driven by significantly higher Glasson Fertilisers branded fertiliser sales, in turn enabled by the opening of the new Avonmouth blending facility. Pricing discipline and strategic purchasing decisions further strengthened fertiliser margins. Seed sales benefited from a strong autumn grass season. Improved net margins across the segment reflected disciplined commercial execution and tight cost control.
Wynnstay’s network of rural retail outlets, under its Stores division, saw similar sales from the previous year, but improved net margins as pricing control offset cost inflation and operating costs were managed tightly.
As well as the Project Genesis consolidation of grain and feed material trading under GrainLink, Wynnstay has integrated the Youngs Animal Feeds and Glasson Grain specialist feed manufacturing into Feed & Grain. This has led to the closure of manufacturing and warehousing facilities at Glasson Dock in Lancaster and Standon Mill in Staffordshire – actions to streamline operations and create a more efficient cost base. There will be associated costs in the £5.4m–£5.9m range, or a net cost of £2.0m–£2.5m after asset and working capital realisations.
“The Group has delivered a strong performance for the year with tangible benefits of Project Genesis already materialising,” states Mr Brand. “This provides a strong platform for us to continue to invest in the business, supporting our long-term growth ambitions and we look forward to providing a further update on this at the time of our Full Year results.”