Wynnstay Regulatory News (WYN)

26 Jan 2005 07:00

Wynnstay Group PLC26 January 2005 WYNNSTAY GROUP PLC ("Wynnstay") ANNOUNCES MAIDEN FINAL RESULTS for year ended 31 October 2004 Based in Wales, Wynnstay manufactures and supplies agricultural products and services to farmers and country dwellers. Key Points • Admission to AiM in May 2004 together with £1.1m (net) fund raising • Turnover increased by 22% to £103.4m (2003: £85.0m) • Operating profit rose by 36% to £2.6m (2003: £1.9m) • Pre-tax profit rose by 46% to £2.6m (2003: £1.8m*) * after an exceptional administrative expense of £0.6m • Proposed final dividend of 4.5p per share (2003: 4.25p), an increase of 6% • Headline earnings per share of 22.78p (2003: 16.33p) • Fully diluted earnings per share of 15.58p (2003: 12.82p) • Good performances from three core divisions, Feeds, Arable and Stores - benefits of acquisition of Eifionydd Farmers Association coming through - record production of livestock feeds - new seed storage facility completed - retail stores sales up by 8% on like-for-like basis • Outlook remains encouraging Bernard Harris, Managing Director of Wynnstay, commented, "In spite of difficult trading conditions, I am pleased to report recordresults, with turnover exceeding £100m for the first time. All divisionsperformed well and our results demonstrate the strength of our diversifiedapproach. Demand remains strong across the three major business units and there is nowgreater stability in feed commodity prices and some small easing in fuel costs.I am therefore confident that the Group will continue to make good progress. Inaddition, the Group is in a strong financial position to take full advantage ofany possible acquisition opportunities that meet our strict criteria." Press enquiries: Wynnstay Group plc Bernard Harris, Managing Director T: 020 7448 1000 today Paul Roberts, Finance Director Thereafter: 01691 828512 Biddicks Katie Tzouliadis T: 020 7448 1000 W.H. Ireland David Youngman T: 0161 832 6644Limited WYNNSTAY GROUPCHAIRMAN'S STATEMENT Introduction This has been a milestone year for the Group and I am pleased to report on theexcellent progress we have made both in trading and on our medium term corporateambitions. A key event was Wynnstay's move from OFEX to AiM in May. The transfer underlinesthe growth plans we have for the Group over the next five years and inparticular, we believe our status as a quoted company brings us significantbenefits as we act as a consolidator within our sector. At the same time aseffecting Wynnstay's admission to AiM, we raised £1.1m net in a placing at 190pper share. This will be used to fund further growth in the business. Trading results for the year show turnover and pre-tax profits at record levels,with turnover exceeding £100m for the first time. All divisions performed welland our results demonstrate the strength of our diversified approach. Financial Results Turnover for the year rose by 22% to £103.4m from £85.0m last year and operatingprofit by 36% to£2.6m (2003: £1.9m). Pre-tax profit increased by 46% to £2.6mfrom £1.8m although last year's results included an exceptional item of£585,000. On a like-for-like basis therefore, pre-tax profit increased by 11%.Headline earnings per share were 22.78p compared to 16.33p last year, with fullydiluted EPS increasing by 22% to 15.58p per share. The balance sheet remains very robust, with net assets of £21.5m. This includesa sum of £2.6m of goodwill related to the acquisition of Eifionydd FarmersAssociation following the reassessment of the fair value of the considerationfor this transaction in accordance with accounting standard FRS 7. The balancesheet strength is further demonstrated by the inclusion of £1.275m of cash and atotal net debt position of only £1.6m, much of which is in the form of loancapital held by existing shareholders. Gearing therefore remains a veryconservative 7.6% and demonstrates the Group's considerable ability to fundfurther growth. Dividend Reflecting the Group's progressive dividend policy, the board is pleased torecommend an increased final dividend of 4.5p per share (2003: 4.25p), whichwill be paid on 30 April 2005 to shareholders on the register at the close ofbusiness on 31 March 2005. Traditionally, the Company does not pay an interimdividend but the Board will continue to keep this policy under regular review. Overview of Trading Market conditions were volatile over the year. However, the broad spread of ouractivities, in particular our presence in both the arable and feeds sectors,provided a smoothing effect. For instance, the rise in the price of grain in thefirst half of the year depressed margins in the Feeds Division but benefited ourgrain trading arm and Arable Division. All three of the Group's core divisions, Feeds, Arable and Stores, continued tomake encouraging progress. The Stores Division, which sells an extensive rangeof products to both farmers and the general public, performed particularly well.The benefits of the integration of a further eight retail sites, acquired withthe purchase of Eifionydd Farmers Association in August 2003, are now beginningto come through strongly. We see excellent growth opportunities for the StoresDivision and have earmarked capital investment to build a new store at ourexisting site in Newtown, Powys. We are also unrolling a new format across ourstores. The Feeds Division produced a very pleasing result in the face of severevolatility in raw material prices and cattle feed sales rose strongly, helped byour partnership with The Welsh Meat Company. We are currently considering anoutline proposal to build a new feed blending plant in North Wales. The ArableDivision saw sales of seeds, fertiliser and agro-chemicals improve and its graintrading arm performed ahead of expectations. We are now planning to extend theactivities of our grain trading arm into new regions. Our joint venture and associate companies contributed £167,000 to Groupoperating profits and in November 2004, following its restructuring, we acquiredfull ownership of the Frank Rowe business, the producer of flowers and potplants. Prospects The rationalisation of the agricultural supply business continues, driven by theimpact of the EU's reform of the Common Agricultural Policy, which is aimed atmaking farmers more competitive and market-orientated. Against this background,we believe our business is well placed to take advantage of the changingsituation and to increase market share. We believe our target of a 50% increase in turnover over the next five years, based on organic as well as acquisitional growth, is achievable. Trading in the new financial year has started well, with good demand across thethree main business units. J. E. DaviesChairman MANAGING DIRECTOR'S REPORT Admission to AiM in May 2004 represented a landmark in the Group's history whichcan be traced back to 1918, when Wynnstay Farmers Association was formed. In theGroup's first year as an AiM quoted company, I am therefore all the moredelighted to report record results. Results are especially creditable for having been achieved in one of the mostvolatile markets for raw materials in over thirty years. The cost of wheat, forexample, a major ingredient for feeds, almost doubled in price before returningto little more than the opening values in the late Summer. I am pleased toreport that prices for raw materials have now returned to more normal levels dueto improved harvests around the globe. All three of our core divisions performed well and we are now seeing thebenefits of the acquisition of the Eifionydd Farmers business in August 2003coming through in these results. DIVISIONAL REVIEW Feeds Division The Feeds Division manufactures and markets a wide range of animal nutritionproducts for farm livestock. The Division also operates a raw materialswholesale business which supplies feed ingredients to farmers and othermanufacturers in England and Wales. The Feeds Division, which accounts for 36% of Group turnover, performed robustlyin a most challenging year, with sales rising by 15%. As I mentioned in myintroduction, raw material prices were extremely volatile and we also sawincreases in compliance, insurance and power costs. Sales of cattle feed increased by over 30%, aided by our partnership with TheWelsh Meat Company, and sheep feed sales rose by 6%, after a record increase ofover 24% in the previous year. The Division has won further new business inpoultry feed sales and we are working closely with a major marketer of eggs toencourage producers to set up welfare friendly egg production units, for nicheproducts, which can be sold into premium outlets. We are now seeing the benefits of the capital expenditure programme, begun in2002, at our flagship feeds plant at Llansantffraid, Powys. Investment hasimproved the plant's capacity and enhanced quality and this year, Llansantffraidproduced record tonnes of Wynnstay branded feed. We have also increased tonnageof blended feeds, which represents a growing sector of the market. We arecontinuing to utilise the facilities of other manufacturers, in both blended andcompound products, to meet peak demand and to expand our geographical coverage. We are considering the construction of a new feed blending plant in Rhosfawr,North Wales during 2005, subject to the confirmation of the award of anObjective 1 EU Grant. This will allow us to supply the increased demand in thatarea and also improve the efficiency of vehicle utilisation between our variousfeed manufacturing operations. The raw material trading department managed a difficult year extremely well andmade a substantial contribution to the profits of the Feeds Division. Itcontinues to build its customer base, particularly in the Eifionydd area. Arable Division The Arable Division supplies a wide range of services and products, includingseeds, fertiliser and agro-chemicals, to grain and grassland farmers. Its graintrading arm provides farmers in the West Midlands with professional marketingservices. Sales in the Arable Division, which account for 34% of Group turnover, rose by8%, with all sectors (seeds, fertiliser and agro-chemicals) increasing theircontribution to the business. The seed operation has continued to develop its relationships with nationalbreeders and is well established as one of the main seed producers in the Westof the Country. Cereal seed sales remained similar to 2003, despite thedifficult crop quality resulting from adverse weather at harvest. Our marketshare of herbage and maize seed continues to grow against market trends. Duringthe Summer, we constructed new storage facilities for the seed arm, which hassignificantly improved operational efficiency. Sales of agro-chemicals have increased by 12%. This was due mainly to growth infarm sales in the Eifionydd area. Volumes of fertiliser have remained stable in a market showing signs of declineas a result of the EU's Mid Term Review of the Common Agricultural Policy. The national fertiliser supply chain has continued to consolidate and we are well placed to benefit from our strong relationship with major manufacturers, including Kemira. Our grain trading arm, Shropshire Grain, produced another very satisfactoryperformance. Sales advanced by about 8%, very much in line with expectations,but an improved margin significantly increased the contribution to the Groupfrom this division. The year has been marked by substantial volatility within the grain market. Theharvest of 2004, which promised so much, was at the last minute seriouslydamaged by the weather. This has given rise to a crop of unusual variation.Managing the variation made exceptional demands of the Shropshire Grain team butI am pleased to report that they have responded skilfully. The businesscontinues to benefit from an increasing drive for premium markets and we haveplans to extend the trading area of the grain division to take advantage of theexpertise we have in this business. Stores Division The Stores Division operates 24 retail outlets in Mid and North Wales,Shropshire, Staffordshire and Warwickshire. It sells an extensive range ofproducts both to professional farmers and the general public. The Stores Division, which accounts for 28% of Group turnover, enjoyed anothersuccessful year, with sales benefiting from the integration of a further eightoutlets acquired with the Eifionydd Farmers business in August 2003. Overall,sales in the core business grew by 8% on a like-for-like basis. Pet product sales improved by 14%, stimulated by a greater emphasis on petaccessories, a growth area of the market. Sales of equine products increased by38%, helped particularly by our new specialist equine outlet based at Shipston,Warwickshire. There was a conscious drive to improve the marketing of country clothingthroughout the year and clothing sales grew by 18%, due to better ranging andimproved presentation. The eight stores acquired with the Eifionydd Farmers business have now beenfully integrated within the Wynnstay chain and their performance showedincremental rises during the year as we improved the product range and serviceswithin each store. We worked hard during the year to improve our supply chain with particularemphasis on product availability and the investment we have made in new I.T.systems is beginning to bring benefits. We have also strengthened our team inpurchasing and supply chain management and we foresee further benefits comingthrough in 2005. We have re-fitted our flagship store at Welshpool with a new format and initialresults are encouraging. During 2005, we intend to roll out a store improvementprogramme, with the new format to include an expanded range of goods and greatersales space given over to pet products, clothing and hardware. We have alsoreceived planning permission for a new store at Newtown, Powys to be built onour existing site and have submitted an application for a new store at ourLlansantffraid site. Joint Ventures and Associates Companies Joint Ventures • Youngs Animal Feeds Limited Youngs Animal Feeds, which manufactures and distributes equine and pet feeds,commenced work on a new factory to produce the Super Molichop range of highfibre equine feeds. Substantial new business has been gained for the new equineproduct range and we have received commitment from a number of substantialequine feed distributors to purchase product from the new plant. • Wyro Developments Limited The property development company had a comparatively low level of activityduring the year. However, work has commenced on the first phase of the Abermuledevelopment near Newtown, Powys where we have sold the first release ofproperties. Ultimately 110 houses will be built in this development across twosites and we are confident that the mixed housing will sell readily. We have nowgained planning permission to develop a redundant brown field site in NorthWales. Construction of a small number of residential houses will begin thisyear. • Welsh Feed Producers Limited Our association with Welsh Feed Producers, the manufacturer of ruminant animalfeeds, is working extremely well and, during the year, we increased ourshareholding to 50%. There are excellent opportunities for our Feeds Division towork closely with our partners, Clynderwen and Cardiganshire Farmers, torationalise the sales, marketing and distribution of feeds in South West Wales. Associate companies • Wynnstay Fuels Limited Wynnstay Fuels, which distributes agricultural, commercial and domestic fueloils, established a new fuel distribution depot at Pwllheli, on a formerEifionydd Farmers site. This has been a great success and further investment inthe depot will take place during the year. • Frank Rowe Following its restructuring, we acquired full ownership of the Frank Rowebusiness in November 2004, after our year-end. The pot plant production businesswill now form a new division within the Group, trading as Foxmoor. OUTLOOK In 2005, we will see the introduction of the most radical changes to the CommonAgricultural Policy ("CAP") since its inception. At the heart of the changes isthe severing of the link between production and direct farm aid. Reform of CAPwill provide a catalyst for farmers to re-think their business strategies inorder to become more competitive and market-focused. We also believe the reformwill speed up the rationalisation trend that is already taking place in theagricultural supply industry. Against this background, the Group is in a strong financial position and weintend to take full advantage of the opportunities that are available to gainmarket share in all sectors. Over the year under review, we examined a number ofbusiness opportunities, most of which were rejected as not meeting our strictacquisition criteria with regard to potential returns and we will continue totake a prudent approach with acquisitions. The purchase of the Eifionydd Farmers Association in August 2003 hassubstantially increased our customer base and there remains excellent scope toincrease sales of our goods and services to this new customer base. We expect our three core divisions to continue to make good progress this yearand both the Stores and Feeds Division will benefit from the capital investmentwe have planned this year to increase capacity and build sales. Sales within theFeeds Division are also benefiting from our partnerships with food suppliers,such as The Welsh Meat Company, which guarantee participating farmers certaincommercial benefits. We are developing further similar specialist partnershipswithin the food supply chain. The new financial year has begun well. Demand remains strong across the threemajor business units and there is now greater stability in feed commodity pricesand some small easing in fuel costs. I am therefore confident that the Groupwill continue to make good progress. B B HarrisManaging Director CONSOLIDATED PROFIT AND LOSS ACCOUNTFor the year ended 31 October 2004 As restated 2004 2003 Note £000 £000TURNOVER 1,2Continuing operations 103,430 80,219Acquisitions - 4,791 103,430 85,010Cost of sales (85,465) (69,009)GROSS PROFIT 17,965 16,001Selling and distribution costs (14,660) (12,979)Administrative expenses (889) (769)Exceptional administrative expense - (585)OPERATING PROFIT 2 2,416 1,668Share of operating profit in joint ventures 110 151Share of operating profit in associates 57 78TOTAL OPERATING PROFIT 2,583 1,897 Net profit on sale of fixed assets 171 -PROFIT ON ORDINARY ACTIVITIES BEFORE INTEREST 2,754 1,897Income from other fixed asset investments 27 -Interest receivable 88 17Interest payable (229) (110)PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION 2,640 1,804TAX ON PROFIT ON ORDINARY ACTIVITIES (780) (552)PROFIT ON ORDINARY ACTIVITIES AFTER TAXATION 1,860 1,252DIVIDENDS - On equity shares 3 (391) (331)RETAINED PROFIT FOR THE FINANCIAL YEAR 1,469 921 --------- -------Earnings per 25p share 3 22.78p 16.33pDiluted earnings per 25p share 3 20.12p 13.86pFully diluted earnings per 25p share 3 15.58p 12.82p There were no recognised gains and losses for 2004 or 2003 other than thoseincluded in the profit and loss account. The notes on the following pages form part of these financial statements. BALANCE SHEETAs at 31 October 2004 As restated 2004 2003 Note £000 £000FIXED ASSETSIntangible fixed assets 4 3,134 601Tangible fixed assets 8,694 8,445Investments 1,651 1,616 --------- --------- 13,479 10,662CURRENT ASSETSStocks 8,018 7,228Debtors 17,210 14,229Cash at bank and in hand 1,275 1,903 --------- --------- 26,503 23,360CREDITORS: amounts falling due within one year (17,856) (17,141) ------------ ------------ NET CURRENT ASSETS 8,647 6,219 --------- --------- TOTAL ASSETS LESS CURRENT LIABILITIES 22,126 16,881 CREDITORS: amounts falling due after more thanone year (437) (585) PROVISIONS FOR LIABILITIES AND CHARGESDeferred taxation (189) (167) --------- --------- NET ASSETS 21,500 16,129 ---------- ---------- CAPITAL AND RESERVES Called up share capital 2,170 1,948Share premium account 2,464 1,428Loanstock redemption reserve 5,084 2,440General reserves 1,582 1,582Profit and loss account 10,200 8,731 ---------- ---------SHAREHOLDERS' FUNDS - ALL EQUITY 21,500 16,129 ----------- ----------- CASH FLOW STATEMENTFor the year ended 31 October 2004 As restated 2004 2003 Note £000 £000 Net cash flow from operating activities 5 128 4,483Returns on investments and servicing of finance 6 (114) (82)Taxation (548) (540)Capital expenditure and financial investment 6 (681) (1,943)Acquisitions and disposals 6 - (605)Equity dividends paid (331) (302) ---- ---- CASH (OUTFLOW)/INFLOW BEFORE FINANCING (1,546) 1,011Financing 6 805 (473) ---- ---- (DECREASE)/INCREASE IN CASH IN THE YEAR (741) 538 ========== ======== RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS/DEBTFor the year ended 31 October 2004 As restated 2004 2003 £000 £000 (Decrease)/Increase in cash in the year 7 (741) 538Repayment of loans and lease financing 453 657 ---- ---- CHANGE IN NET DEBT RESULTING FROM CASH FLOWS 7 (288) 1,195New finance leases and debt (451) (984)Loans and finance leases acquired with subsidiary - (821) ---- ---- MOVEMENT IN NET DEBT IN THE YEAR (739) (610)Net debt at 1 November 2003 (888) (278) ---- ---- NET DEBT AT 31 OCTOBER 2004 7 (1,627) (888) ============ ========== NOTES 1. ACCOUNTING POLICIES 1.1 Basis of preparation of financial statements The financial information is prepared under the historical cost convention andin accordance with applicable United Kingdom law and accounting standards. Theparticular accounting policies adopted are described below. Certain comparative disclosure figures have been restated to accord with currentyear reporting formats. 1.2 Basis of consolidation and goodwill Corporate and unincorporated joint ventures in which the Group has an investmentrepresenting not less than 20% of the voting rights, and over which it exertssignificant influence, are treated as associated undertakings. The Groupaccounts include the appropriate share of these undertakings' profits based onthe latest available audited accounts, and provide for an appropriate share oftheir losses, based on the latest available management accounts. The results ofsubsidiary undertakings are consolidated on an acquisition accounting basis,with purchased goodwill arising prior to FRS 10 written off against reserves.Following the implementation of FRS 10, purchased goodwill is capitalised andwritten off over its estimated useful economic life. The Company has taken advantage of the exemptions conferred by S.230 of theCompanies Act 1985 not to prepare a profit and loss account. A profit of£1,603,000 (2003: £989,000) has been dealt with in the parent company accounts. 1.3 Turnover Turnover represents the invoiced value of sales which fall within WynnstayGroup's ordinary activities and excludes Value Added Tax. 1.4 Tangible fixed assets and depreciation Tangible fixed assets are stated at cost, net of depreciation and any provisionfor impairment.Depreciation is provided at rates calculated to write off the cost of fixedassets on a straight line basis over their expected useful lives as follows: Freehold property - 2.5% - 5% per annumPlant and machinery/office equipment - 10% - 33% per annumMotor vehicles - 20% - 30% per annum 1.5 Stocks Stocks are valued at the lower of cost and net realisable value. 1.6 Deferred taxation Provision is made in full for all taxation deferred in respect of timingdifferences that have originated but not reversed by the balance sheet date. Deferred tax assets are recognised to the extent that it is more likely than notthat they will be recovered. 1.7 Leasing and hire purchase Assets held under finance leases or being obtained under hire purchase contractsare capitalised in the balance sheet and depreciated over their useful economiclives, interest being charged to the profit and loss account over the period ofthe agreement. Operating lease rentals are charged to the profit and lossaccount as incurred. 1.8 Pensions The Company operates a defined contribution scheme. Contributions to this schemeare charged to the profit and loss account, as they are incurred in accordancewith the rules of the scheme. 1.9 Employee share ownership trust The Company operates an employee share ownership trust. Contributions to thistrust are charged to the profit and loss account on an accruals basis. 1.10 Investments (i) Subsidiary UndertakingsShare in subsidiaries are valued at cost less provision for permanent impairment. (ii) Associated undertakingsInvestments in associates are stated at the amount of the company's share of netassets. The consolidated profit and loss account includes the company's share ofthe associated companies' profits after taxation using the equity accountingbasis. (iii) Joint venture undertakingsInvestments in joint ventures are stated at the company's share of net assets.The company's share of the profits or losses of the joint ventures is includedin the consolidated profit and loss account using the equity accounting basis.This accounting treatment is not in line with the requirements of FinancialReporting Standard 9, Associates and joint ventures, which requires the adoptionof the gross equity accounting basis. There is no material effect to thereported figures as a result of this departure. (iv) Other investmentsInvestments held as fixed assets are shown at cost less provisions for theirpermanent impairment. 2. OPERATING PROFITThe Operating profit is stated after charging: As restated 2004 2003 £000 £000Amortisation - intangible fixed assets 249 161Depreciation of tangible fixed assets: - owned by the company 825 869 - held under finance leases 203 162Auditors' remuneration 35 29Auditors' remuneration - non-audit 20 18Operating lease rentals: - other operating leases 48 113Directors emoluments 508 492Exceptional administrative expense - 585 ==== ==== Auditors fees for the Company were £28,000 (2003: £23,000) 3. DIVIDENDS AND EARNINGS PER SHARE As restated 2004 2003 £000 £000 391 331 ======== ======== Total dividends proposed The proposed dividend is as recommended in the directors report at a rate of 4.5pence net per 25p ordinary share (2003: 4.25 pence net per 25p ordinary share). Fully diluted earnings per share figures are presented below in addition to thebasic and diluted earnings per share figures required to be reported underFinancial Reporting Standard 14, Earnings per share. In the opinion of thedirectors such figures are relevant to the understanding of the financialposition of the Group in the light of the convertible loanstock. The fullydiluted earnings per share figures may be reconciled to the diluted earnings pershare figures after taking into account the different weighting apportionmentsinvolved. Basic earnings per share Diluted earnings per share Fully diluted earnings per share 2004 2003 2004 2003 2004 2003 £000 £000 £000 £000 £000 £000 Earningsattributabletoshareholders 1,860 1,252 1,882 1,252 1,882 1,252Weightedaveragenumberof shares inissue during the year 8,166 7,666 9,354 9,034 12,077 9,767Earnings perordinary 25pshare 23 16 20 14 16 13 ====== ====== ====== ====== ====== ====== Comparative share numbers above have been restated to allow for the share splitfrom one single ordinary £1 share to four ordinary 25p shares. 4. INTANGIBLE FIXED ASSETS Intangible fixed assets represent purchased Goodwill which is being amortisedover the estimated life of each transaction. In accordance with FinancialReporting Standard 7, Fair values in acquisition accounting, a revised fairvalue assessment has been made as at 31st October 2004 of the purchaseconsideration for the Eifionydd Farmers transaction. This reassessment isrequired due to the consideration being in the form of convertible loanstock,the fair value of which fluctuates with the price of the Company's shares untilthe loanstock is actually converted into ordinary shares in the Company. Theconversion period is 1st September 2005 to 31st August 2006. The revised fairvalue has created an additional goodwill asset of £2,644,000, which has beenamortised in this period by £132,200. An equivalent adjustment has been made tothe Loanstock Redemption Reserve 5. NET CASH FLOW FROM OPERATING ACTIVITIES 2004 2003 £000 £000 Operating profit 2,583 1,897Associated undertaking results (167) (229)Amortisation of intangible fixed assets 249 160Depreciation of tangible fixed assets 1,028 1,031Increase in stocks (790) (579)Increase in debtors (2,981) (1,368)Increase in creditors 206 3,571 ---- ---- NET CASH INFLOW FROM OPERATIONS 128 4,483 ======== ======== 6. ANALYSIS OF CASH FLOWS FOR HEADINGS NETTED IN THE CASH FLOW STATEMENT 2004 2003 £000 £000RETURNS ON INVESTMENTS AND SERVICING OF FINANCEInterest received 88 14Interest paid (177) (63)Hire purchase interest (52) (33)Dividends received 27 - ---- ---- NET CASH OUTFLOW FROM RETURNS ON INVESTMENTS AND SERVICING OF FINANCE (114) (82) ========== ========= 2004 2003 £000 £000CAPITAL EXPENDITURE AND FINANCIAL INVESTMENTPurchase of intangible fixed assets (63) (74)Purchase of tangible fixed assets (902) (1,786)Proceeds from sale of tangible fixed assets 40 56Purchase of investments (50) (139)Proceeds from sale of investments 294 - ---- ---- NET CASH OUTFLOW FROM CAPITAL EXPENDITURE (681) (1,943) ========== ============ 2004 2003 £000 £000ACQUISITIONS AND DISPOSALSPurchase of subsidiary undertaking - (492)Legal fees re acquisition - (20)Net overdrafts acquired with subsidiary and other acquisitions - (93) ---- ---- NET CASH OUTFLOW FROM ACQUISITIONS AND DISPOSALS - (605) ====== ====== 2004 2003 £000 £000FINANCINGIssue of ordinary shares 1,258 184Repayment of loans (190) (442)Capital element of finance lease repayments (263) (215) ---- ---- NET CASH INFLOW/(OUTFLOW) FROM FINANCING 805 (473) ======== ======== 7. ANALYSIS OF CHANGES IN NET DEBT Other non-cash 1 November Cash flow changes 31 October 2003 2004 £000 £000 £000 £000Cash at bank andin hand: 1,903 (628) - 1,275Bank overdraft (496) (113) - (609) ---- ---- ---- ---- 1,407 (741) - 666DEBT :Finance leases (490) 263 (394) (621)Debts due withinone year (1,515) (12) (57) (1,584)Debts falling dueafter more thanone year (290) 202 - (88) --------- ------- ----- -------- NET DEBT (888) (288) (451) (1,627) ========== ========== ========== ============ 8. ANNUAL REPORT The annual report and financial statements will be posted to shareholders inFebruary 2005. Further copies will be available after that date from the CompanySecretary, Wynnstay Group plc, Eagle House, Llansantffraid, Powys SY22 6AQ. 9. ANNUAL GENERAL MEETING The Annual General Meeting of Wynnstay Group plc will be held at The Lord HillHotel, Shrewsbury on the 22 March 2005 at 11.45am. This information is provided by RNS The company news service from the London Stock Exchange