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.