Wynnstay Regulatory News (WYN)

23 Mar 2006 07:00

Wynnstay Group PLC23 March 2006 WYNNSTAY GROUP PLC ("Wynnstay" or "the Company") Annual General Meeting and Trading Statement Wynnstay Group plc will be holding its Annual General Meeting this morning. Inhis address to shareholders, Chairman, Mr. John Davies will make the followingcomments, "Wynnstay announced record results for the year ended 31 October 2005, withturnover of £100.81 million and profits before tax of £2.87 million, a rise of9% over the same period last year. The proposed dividend of 5p per sharerepresents an 11% increase over the previous year. "As I reported in my Chairman's Statement within the Annual Report and Accounts,the trading environment is challenging. "The reform of the Common Agricultural Policy ("CAP") and the commencement ofthe Single Farm Subsidy Payment has introduced significant uncertainty into themarket place and is changing farmers' traditional buying patterns. In addition,energy price rises, particularly for electricity and fuel have increased theCompany's manufacturing and distribution costs. "The most immediate impact of CAP reform continues to be felt on Wynnstay'sfertiliser sales, where volumes have been depressed. In the first four months ofthe current financial year, continuing price inflation and the inclement weatherhave contributed to a significant reduction in volumes. Given the vitalimportance of the spring market, in the absence of a recovery, this will have amaterial impact on the Company's financial performance for the half year. Despite these difficulties, we believe our broad spread of activities and strongbalance sheet provides us with a robust base from which to make progress. We arecontinuing to broaden the appeal of our Stores offering and our strategy ofdeveloping income streams outside the Company's core agricultural activities,via joint ventures such as Wyro Developments, is bearing fruit. Meanwhile, weremain well placed to play an active role in the consolidation of the sector." For further details, please contact: Wynnstay Group plc Bernard Harris, Managing Director T: 01691 828512 Paul Roberts, Finance Director Biddicks Katie Tzouliadis T: 020 7448 1000 WH Ireland Limited David Youngman T: 0161 832 2174 This information is provided by RNS The company news service from the London Stock Exchange