Wynnstay said the signing of the EU trade deal and the UK Agricultural Bill has significantly increased farmer confidence and certainty
The agricultural supplies group reported 鈥榬esilient' results for the financial year ending October 31 2020 in what it described as a year of 鈥榰nprecedented challenges for the agricultural sector'.
Revenues fell from 拢490.60m to 拢431.40m, affected by commodity deflation and reduced volumes in certain traded commodities, in particular grain.
But underlying pre-tax profit increased by 4 per cent to 拢8.37m.
The agricultural division saw revenues of 拢302.58m and a profit of 拢2.88m, down from 拢2.95m in 2019 with feed activity performing well, but arable activity affected by lower demand for inputs and reduced volumes of grain available for trading.
Challenges
The business said the challenges would have been significant 鈥榚ven without the coronavirus crisis' with subdued farmer confidence from lower farmgate prices and Brexit uncertainty as well as the poor season due to an abnormally wet 2019 Autumn.
Covid-19 added extra difficulties but the groups said it had worked hard to adopt new practices to continue to operate all its sites and it had managed to keep all its depots, manufacturing and processing facilities open besides a short period when a 鈥榟andful' of depots closed.
Gareth Davies, Wynnstay Chief Executive, said the results reflected well on its 鈥榖alanced business model, strong financial management and recent growth initiatives'.
He added the new financial year had started well.
"We remain focused on developing our channels to market, investing to build capacity and capability, particularly advisory, and implementing efficiencies.听
"Stronger farmgate prices, the EU settlement and UK Agricultural Bill continue to buoy sentiment across the farming sector.
"We believe that Wynnstay is in an excellent position to help farmers adapt to new priorities set by the Agricultural Bill, and look to the future with confidence".听
