Wynnstay Group Exceeds Expectations on Project Genesis Momentum

Wynnstay Group PLC (LON: WYN) today announced that underlying trading results for the year ended October 31, 2025, are expected to modestly exceed current market expectations.

Adjusted profit before tax is anticipated to be approximately £9.0 million, surpassing the consensus of £8.5 million.

This positive performance is attributed to the early success of Project Genesis, a strategic initiative focused on sharpening commercial focus and driving operational efficiencies.

The company's strong results reflect improved pricing discipline, stronger margins, and enhanced operational efficiency across the Group, all cornerstones of Project Genesis.

Wynnstay's management emphasized that the behavioural changes implemented throughout the year are embedding a more disciplined operating model, establishing a solid foundation for future growth in fiscal year 2026 and beyond.

The Feed & Grain division demonstrated improved year-on-year profitability, even with lower feed volumes due to decreased poultry volumes. Stronger margins and diligent cost control offset the volume decline.

The closure of the Twyford mill contributed to planned cost savings. The Carmarthen expansion, adding 20,000 tonnes of capacity, is nearing completion, positioning the segment favorably for fiscal year 2026.

Grain trading faced challenges from a weaker wheat harvest and persistently low wheat prices, impacting both volumes and margins. However, operational discipline remained a key strength, with the complete integration of trading activities into the unified GrainLink model.

The Arable sector experienced increased profits year-on-year, fueled by significantly higher blended fertiliser sales under the Glasson Fertilisers brand. The successful launch of the new Avonmouth blending facility played a crucial role.

Pricing discipline and strategic purchasing further bolstered margins. Seed sales also benefited from a strong autumn grass season. Overall, net margins in the Arable segment improved, reflecting disciplined commercial execution and stringent cost control.

Like-for-like retail sales in Wynnstay stores remained broadly unchanged. Effective pricing control helped offset cost inflation, and operating costs were managed tightly, resulting in improved net margins within the retail segment.

Wynnstay Group generated strong operating cash flow throughout the year, ending with net cash (pre-IFRS 16 leases) of £26.4 million, compared to £32.8 million in 2024. This robust cash position provides the company with ample investment capacity for the next phase of Project Genesis.

The design phase of Project Genesis is now complete, along with the Group-wide asset review. Integration activities, including the consolidation of trading operations under GrainLink and the integration of Youngs Animal Feeds and Glasson Grain’s specialist feed manufacturing, have been implemented.

As a result of the asset review, manufacturing and warehousing operations at Glasson Dock (Lancaster) and Standon Mill (Staffordshire) have closed to streamline operations and create a more efficient cost base.

Non-recurring costs associated with these activities are expected to range from £5.4 million to £5.9 million, with a net cash cost of £2.0 million to £2.5 million after asset and working capital realisations. No further material restructuring charges are expected in fiscal year 2026.

The company said early trading in the new financial year is in line with management's expectations and it remains focused on the disciplined execution of Project Genesis and the delivery of targeted margin, cost, and efficiency gains.

Audited results for the year ended October 31, 2025, will be released on Monday, February 9, 2026.

Alk Brand, Wynnstay CEO, commented: “The Group has delivered a strong performance for the year with tangible benefits of Project Genesis already materialising. This provides a strong platform for us to continue to invest in the business, supporting our long-term growth ambitions and we look forward to providing a further update on this at the time of our Full Year results.”