Delivering a sustainable farming future

ANNUAL REPORT AND ACCOUNTS 2022

Annual Report and Accounts 2022

Contents

Operational Highlights

3

Financial Highlights

4

Strategic Report

Group Structure

5

Business Model

6

Our Divisions

7-8

Key Strengths

9

Market Trends

10

Our Pillars

11

Growth Strategy

12

Chairman's Statement

15-18

Chief Executive's Review

19-24

Finance Review

27-29

Company Details and Advisors

30

Principal Risks and Uncertainties

31-33

S172 Statement

34-35

ESG Framework

Environmental Strategy and SECR Statement

36-38

Corporate Values

39-40

Social

41-44

Corporate Governance Statement

45-48

Audit Committee Report

49-51

Directors' Responsibility Statement

52

Board of Directors and Company Secretary

53-54

Senior Management

55-56

Directors' Report

57-58

Directors' Remuneration Report

59-64

Independent Auditor's Report

65-67

Financial Statements

Consolidated Statement of Comprehensive Income

68

Consolidated and Company Balance Sheet

69

Consolidated and Company Statement of Changes in Equity

70-71

Consolidated and Company Cash Flow Statements

72

Principal Accounting Policies

73-77

Notes to the Accounts

78-109

Shareholder Information

Notice of Annual General Meeting

110

Notes to Notice of Annual General Meeting

111-112

Financial Calendar

112

Our Mission

To help the farmer to feed the UK in a more sustainable way

Operational Highlights:

FEED

GRAIN

ESG

GLASSON

DEPOTS

INVESTMENT AND

PERFORMING

PROGRESSING

EXCEPTIONAL

EXCELLENT

ACQUSITION

AHEAD OF

WITH OUR

PERFORMANCE

PERFORMANCE

EXPECTATIONS

OBJECTIVES

AND

OPTIMISATION

The Feed division

2022 saw good

We have progressed

Performance from

The Specialist

saw an increase of

performance from

well with our internal

Glasson Grain Ltd

Agricultural

5.9% in volumes

GrainLink, impacted

sustainability

was exceptional,

Merchanting division

and the investment

by record grain

objectives, focusing

driven by one off

performed ahead

project in our

prices, favourable

on carbon, water

gains in fertiliser

of expectations,

Carmarthen Mill

weather, and a

and waste. Climate

blending activity.

with strong sales

commenced. We

strong harvest.

friendly feeds and

The integration

of bagged feed.

completed our

We saw good

an increased focus

of the Howden

We continued our

biggest acquisition

trading volumes in

on environmental

site, acquired

depot optimisation

to date, Humphrey

the east following

seed mixtures further

in the previous

programme with the

Feeds & Pullets, a

our expansion.

developed our

financial year, has

closure of one site

specialist poultry

Investment was

holistic farm offering

progressed well and

and enhancement of

business in the

made at our seed

to our customers.

resulted in a higher-

existing sites.

South of England.

plant, adding

Considerable

than-expected

new cereal seed

progress has

contribution.

technology and

been made in the

doubling grass seed

implementation of a

production capability.

Sustainable Farming

Advisory Team

which will be further

developed in 2023.

3 ANNUAL REPORT AND ACCOUNTS 2022

Financial Highlights

500.39

713.03

462.66

490.60

431.40

'18

'19

'20

'21

'22

Group Revenue (£m)

£713.03m

13.36

14.00

14.60

15.50

17.00

'18

'19

'20

'21

'22

Dividend per Share (pence)

17.00

22.61

82.72

9.597

8.006

8.371

11.439

39.11

30.95

27.73

44.40

'18

'19

'20

'21

'22

'18

'19

'20

'21

'22

Underlying Pre-tax Profit*

Earnings per Share (pence)

£22.61m

82.72p

930

978

899

910

966

'18

'19

'20

'21

'22

Colleagues

Group Revenue

+42%

Earnings per Share

+86%

£713.03m

82.72 pence

2021: £500.39m

2021: 44.40 pence

Underlying Pre-tax Profit*

Shareholders' Funds

£22.61m

+98%

£130.70m

+24%

2021:£11.44m

2021 £105.72m

Profit before Tax

+92%

Dividend per Share

+9.7%

£21.12m

17.00 pence

2021: £10.99m

2021: 15.50 pence

*Underlying pre-tax profit is a non-GAAP (generally accepted accounting principles) measure and is not intended as a substitute for GAAP measures and may not be calculated in the same way as those used by other companies. Refer to the Finance Review for an explanation on how this measure has been calculated and the reasons for its use.

ANNUAL REPORT AND ACCOUNTS 2022

Wynnstay Group Plc 4

Group Structure

Wynnstay helps livestock and arable farmers to produce food in a more sustainable, environmentally friendly and profitable way. We provide our customers with quality products, specialist advice and an efficient service that is industry leading.

The business model is aligned with the buying needs and habits of our farming customer base, which includes arable, livestock and mixed farms. The Group is committed to sustained development within the agricultural sector and strives for continued growth with a view to optimising the return to all stakeholders.

SPECIALIST

AGRICULTUREAGRICULTURAL

MERCHANTING

FEED

DEPOTS

YOUNGS

ARABLEANIMAL FEEDS

GLASSON

HUMPHREY

FEEDS &

PULLETS

5 ANNUAL REPORT AND ACCOUNTS 2022

Business Model

OUR PROPOSITION

Trusted Experts

Manufacturing

Capability

Product Range

Established

Multi-Channel Offering

Culture & Values

WE INVEST IN SUSTAINABLE

GROWTH THROUGH:

People

Technology

Manufacturing

Acqusitions

CREATING VALUE FOR STAKEHOLDERS:

Customers

Employees

Shareholders

Suppliers

Communities

ANNUAL REPORT AND ACCOUNTS 2022

Wynnstay Group Plc 6

Our Divisions

Agriculture

Comprises the manufacturing and supply of a comprehensive range of agricultural inputs to customers across many parts of the UK.

FEED

The Group operates three feed mills and three blending plants, offering a full range of animal nutrition products to the agricultural market in bulk or bags. Third party mills are also used to satisfy additional seasonal and geographic requirements.

GLASSON

Glasson operates from Glasson Dock, near Lancaster. It is a producer of blended fertiliser, a supplier of feed raw materials and a manufacturer of added-value products to specialist animal feed retailers.

The business operates fertiliser blending manufacturing facilities at Winmarleigh, Goole, Montrose, and Howden, and also sources from a facility at Birkenhead. It is currently the second largest fertiliser blender in the UK.

Glasson complements the Group strategy by providing a further internal hedge against commodity volatility in the agricultural supply sector.

HUMPHREY FEED & PULLETS

Humphrey Feeds & Pullets is a leading poultry feed supplier and point of lay pullet supplier to the independent poultry farmer. The business offers both traditional and organic feeds, manufacturing from a mill in Twyford. Humphrey Feeds & Pullets specialises in offering expert knowledge on poultry nutrition and husbandry, with a primary mission of advancing poultry performance.

ARABLE

The Group's arable activities supply a wide range of products to arable and grassland farmers, including seed, fertiliser and agro-chemicals. Seed processing facilities are located at Shrewsbury, Shropshire.

GRAINLINK

GrainLink is the Group's in-house grain marketing company and provides farmers with an independent professional marketing service backed by the financial security of the Wynnstay Group. The Company has access to major markets for specialist milling and malting grain as well as feed into mills. GrainLink operates from offices in Shropshire and Yorkshire.

7 ANNUAL REPORT AND ACCOUNTS 2022

Our Divisions

Specialist Agricultural Merchanting

Supplies specialist agricultural and associated sundry products to customers throughout Wales, the Midlands, North West and South West of England

DEPOTS

The Group's Specialist Agricultural Merchanting depots are well established and provide a comprehensive range of products for farmers and rural dwellers. The Group operates 53 depots across Wales, the Midlands, North West and South West England, supplying to farmers, smallholders and rural dwellers.

Our team is trained to help customers with technical advice and our customers can purchase via depot, click and collect or for direct delivery.

We partner with pharmaceutical companies to provide specialist advice on animal health and other agricultural products

YOUNGS ANIMAL FEEDS

Youngs Animal Feeds operates from its production facility at Standon, Staffordshire, and two other locations, selling a range of equine and small animal feeds through to wholesalers and retailers, including our own depot network, in Wales and the Midlands. The Sweet Meadow branded equine feed range is a market leading product.

ANNUAL REPORT AND ACCOUNTS 2022

Wynnstay Group Plc 8

Key Strengths

2

COMPLEMENTARY &

BALANCED33DIVISIONS

ACQUISITIONS SINCE 2004

966

COMMITTED AND LOYAL COLLEAGUES

25,000

PRODUCTS

£713m

IN REVENUE

A robust and balanced business model with two complementary divisions - Agriculture and Specialist Agricultural Merchanting.

33 acquisition alongside a number of other commercial initiatives since 2004. Opportunities for future growth into the currently fragmented farming and rural economy by increased geographic reach though organic and focused acquisitions.

Committed and loyal colleagues who offer technical advice to support the prosperity of our farmer customer base through efficiencies and an extensive range of products.

A broad range of agricultural products, marketed via a multichannel sales offering.

Strong financials with the capacity to support future growth.

9 ANNUAL REPORT AND ACCOUNTS 2022

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Wynnstay Group plc published this content on 18 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 18 October 2023 12:13:34 UTC.