Wynnstay FY25: stronger margins, higher adjusted profits, and a clear growth plan
Wynnstay’s FY25 results show a business getting fitter and more disciplined. Revenue dipped 4.8% to £583.4m as weaker grain markets and lower feed volumes bit, but gross profit edged up 1.6% to £80.5m and adjusted profits moved smartly higher. Adjusted profit before tax rose 21.1% to £9.2m, with adjusted EPS up 21.0% to 28.8p.
There’s also a modest dividend lift to 17.8p, marking 22 years of unbroken growth. The flip side: statutory profit fell as transformation costs went through, and net cash eased as Wynnstay invested in capacity and built stock ahead of the winter trading period.
| Key metric | FY25 | FY24 | YoY |
|---|---|---|---|
| Revenue | £583.4m | £613.1m | -4.8% |
| Gross profit | £80.5m | £79.2m | +1.6% |
| Adjusted operating profit | £9.2m | £7.9m | +16.5% |
| Adjusted profit before tax | £9.2m | £7.6m | +21.1% |
| Adjusted EPS | 28.8p | 23.8p | +21.0% |
| Statutory EPS | 9.88p | 12.12p | -18.4% |
| Net cash (excl. IFRS 16) | £25.7m | £32.8m | -21.6% |
| Net cash (IFRS 16 basis) | £9.8m | £17.2m | -43.0% |
| Non-recurring items | £5.9m | £2.3m | n/a |
| Total dividend per share | 17.8p | 17.5p | +1.7% |
What drove the improvement: pricing discipline and Project Genesis
“Adjusted” strips out one-offs like restructuring, amortisation, and derivative revaluations to show underlying trading. On that basis, Wynnstay’s execution stepped up. Tighter pricing, better product mix, and cost control expanded margins despite lower volumes.
Project Genesis – a three-year programme to simplify and integrate the business – is doing what it says on the tin. The year carried £5.9m of non-recurring costs tied to site closures, reorganisation and integration, but the company reiterates no further material restructuring charges are expected in FY26. That matters because it narrows the gap between adjusted and statutory earnings in the year ahead.
Segment roundup: Feed & Grain, Arable, and Stores
Feed & Grain: margins up, volumes down, platform stronger
Adjusted profit before tax increased to £1.3m (2024: £0.7m). Manufactured feed volumes fell 6.5%, largely due to the planned transition away from poultry at Twyford and a weak UK harvest. Against that, margins “strengthened meaningfully”, helped by a unified GrainLink trading model and tighter commercial discipline.
The Carmarthen expansion is important here: a planned increase of more than 20,000 tonnes of feed capacity (14%) should support volume recovery and operational leverage from FY26.
Arable: fertiliser-led recovery and Avonmouth online
Adjusted profit before tax rose to £2.3m (2024: £1.4m). Blended fertiliser volumes were up nearly 14% under Glasson Fertilisers, pricing was disciplined, and the new Avonmouth blending plant was successfully commissioned. Seed also improved, supported by grass and environmental seed demand.
Management flags further targeted investment, including expansion in Scotland, as they look to build on this momentum.
Stores: resilient trading and firmer margins
Adjusted profit before tax came in at £5.7m (2024: £5.5m). Like-for-like retail sales were broadly unchanged, but pricing actions and tight cost management lifted operating performance. A strategic review of store formats and locations is in train, with selective expansion likely where returns stack up.
“Strategy Genesis”: five-year plan with capacity-led growth
With the foundations laid, Wynnstay has launched “Wynnstay Strategy Genesis”: a five-year plan focused on accelerating growth, increasing returns, and improving customer propositions. A key plank is capacity. Across feed milling, fertiliser blending and seed processing, the Group is targeting around 160,000 tonnes of incremental capacity over the life of the plan.
- Feed: Carmarthen expansion (+20,000 tonnes), plus creating compound capacity at Llansantffraid.
- Fertiliser: Avonmouth is online; more blending and packing capacity planned at Condover, and further expansion under evaluation in Scotland.
- Commercial: a “share-of-wallet” push to sell more into the existing customer base via better cross-selling and service.
The direction of travel is clear: build efficient, modern capacity in core geographies and sell more through tighter execution.
Cash, facilities and dividend: solid footing, investing for growth
Net cash (excluding leases) finished at £25.7m (2024: £32.8m), with net cash of £9.8m on a full IFRS 16 basis. The reduction reflects stepped-up capex and a deliberate build in working capital ahead of winter trading, plus Avonmouth coming into full use.
Operating cash generated after working capital was £7.2m (2024: £19.1m). Liquidity headroom remains strong, supported by an undrawn £10.0m revolving credit facility to February 2027 and £10.5m of unused overdrafts. The proposed final dividend of 12.1p takes the year’s total to 17.8p, up 1.7%.
Mind the gap: adjusted vs statutory
Statutory profit before tax fell 14.6% to £3.5m and statutory EPS dropped to 9.88p, chiefly because of non-recurring transformation costs and other adjusting items. In short, underlying trading improved, but the clean-up and integration work hit the statutory line.
If the promise of “no further material restructuring charges” in FY26 holds, that gap should narrow, making progress more visible at the bottom line.
Governance and safety: chairman succession and HSE investigation
Chairman Steve Ellwood will step down at the AGM on 24 March 2026 after a decade on the Board, with Senior Independent Director Steven Esom set to succeed him. Catherine Bradshaw will become SID after the meeting. The orderly handover suggests strategic continuity as the five-year plan gets going.
Separately, Wynnstay continues to cooperate with the HSE following a fatal incident in January 2025. No provision has been recognised, and enhanced safety investments have been made. It is a sombre reminder that operational discipline goes beyond costs and margins.
Outlook and my take: steady start to FY26, execution now key
Early trading in FY26 is in line with the Board’s expectations. Sector conditions are mixed – red meat and free‑range eggs look robust, while milk prices have eased since year end – but Wynnstay’s diversified exposure helps smooth volatility. With a stronger operating model and a clear capacity-led plan, the setup for medium-term growth is better than it has been in years.
- Positives: margin improvement, adjusted EPS up 21.0%, strong liquidity, 22nd consecutive dividend increase, and clear capacity pipeline (Carmarthen, Avonmouth, Condover, Llansantffraid).
- Watch-outs: statutory earnings still subdued by one-offs, lower revenue base after weak harvest and poultry exit, working capital rebuild weighing on cash conversion, and sector price volatility (not least milk).
What could move the shares next
- Proof of delivery: sustained margin gains without additional restructuring costs in FY26.
- Capacity execution: Carmarthen ramp-up and full benefits from Avonmouth coming through on time and on budget.
- Cash discipline: unwind of year-end stock build and continued strong cash conversion.
- End-market signals: milk price trajectory versus resilient red meat and egg markets.
- Stores strategy: evidence of returns from estate optimisation and selective expansion.
Overall, this is a credible year of underlying progress. The heavy lifting of integration is largely behind them; now it is about turning a stronger platform into steady, compounding returns.
