WYNNSTAY GROUP, BRITAIN’S AGRICULTURE SPECIALIST

Ticker: WYN

Price change since beginning of 2024: +11.00%

12- Month price change: +13.75%

INTRODUCTION

Wynnstay Group (WYN) is one of Britain’s key agricultural companies, as the company not only produces and supplies the agricultural sector with key materials for farming, such as fertilizer, seed and feed, the company also enables farmers to sell their product through its marketing arm, GrainLink. The company also provides consulting services for companies within the agricultural sector, such as providing advice regarding environmental measures, animal health and nutrition. The company is critical to the agricultural sector. Established in 1918, the company has a long history within the agricultural sector, and throughout that time, establishing itself as a reliable partner to farmers, while also maintaining a strong reputation in the UK share market as a company that consistently increases its dividend payouts.

WYNNSTAY MISSED ON EARNINGS, BUT REVENUE BEAT 2022 RECORD

According to the company’s most recent earnings report, the company reported a decline in net profit for the 2023 financial year. Having said that, it’s important to note that 2022 was a record year, and the company signaled at the time that they were not expecting a repeat of that performance, largely because 2022 was an anomaly in terms of the trading environment. While net income did fall in 2023, revenues increased 3%, while the company also grew its asset base. Despite softer trading conditions in 2023, the company still managed to grow revenue, which is fundamental for long-term performance. Furthermore, the company grew their dividend payout for the 20^th straight year, which is a testament to the durability of the company’s business model.

STRATEGIC ACQUISITIONS CONTINUE, AS WYNNSTAY BUILDS ON 2022 SUCCESS

Wynnstay (WYN) continued to acquire companies to improve their extensive network of feed suppliers. The company recently bought Humphrey Feeds and Tamar Milling, in a bid to cut their manufacturing costs and improve overall bottom-line performance. Despite the dip in share price from its near all-time highs in 2022, Wynnstay (WYN) still has plenty of potential for growth based on its strategic direction and revenue growth. If the company can integrate its recent acquisitions and lower their overall costs, the dip in share price may prove advantageous.

CAN WYNNSTAY POWER THROUGH, DESPITE THE RECENT SETBACKS?

Wynnstay (WYN) is evidently an established company, and some could argue one of the better UK penny shares. Providing critical farmer support, while to some extent providing a market for the farmers is a unique approach and is likely to help Wynnstay (WYN) remain a stable company. Two decades of dividend growth, growing revenues on the back of a record year and key strategic acquisitions for the company are all likely to play a role in shaping an optimistic sentiment toward the company, which could play a key role in helping overcome the recent price setbacks.