Wynnstay Group – lower sales but higher profits, 22-years of dividend growth, shares 395p, valuation 575p

Mark Watson-Mitchell - 09.02.2026

Despite a near 5% fall in its overall sales in the year to end-October 2025, Wynnstay Group (LON:WYNN), the undervalued £91m-capitalised agricultural supplies and services supplier has this morning declared a 21.1% rise in pre-tax profits.

"FY25 has been a year of significant progress for Wynnstay, with a stronger underlying performance and clear early benefits from the operating changes delivered during the year.

The business enters FY26 in a materially strengthened position, with a robust balance sheet, and a clearer platform for growth under Wynnstay Strategy Genesis."

The group’s brokers have this morning stated that:

“Wynnstay has the ability to take advantage of the structural growth drivers in agriculture, particularly with its focus on progressing and developing its specialist advisory offering targeting the higher end of the food value chain (warranting a higher rating) and supporting its increased share of wallet strategy.

We continue to see the Group as a critical/vital partner in supporting UK agriculture/farmers in ensuring efficient food production (cost-effective food for consumers), food security and food safety, which is becoming an increasing issue.”

The Final Results

The group reported final results to end-October 2025, showing a strong operational performance in line with upgraded market expectations, with adjusted profit before tax increasing by 21.1% to £9.2m, driven by improved margins and efficiencies.

Revenue decreased by 4.8% to £583.4m due to lower feed volumes and grain prices, but gross profit rose 1.6% to £80.5m.

The company proposed a progressive dividend of 17.8p per share, a 1.7% increase, marking 22 years of unbroken dividend growth, and ended the year with net cash of £25.7m.

The group's balance sheet remains strong and well capitalised, with net assets of £132.8m, some 43% higher than the group’s market capitalisation.

FY25 represents a year of clear underlying improvement and focused operational delivery.

Adjusted profitability increased, margins strengthened across the group, and the operational changes implemented during the year are beginning to demonstrate their financial impact.

With a strong balance sheet, a disciplined capital allocation framework and clear investment priorities under Strategy Genesis, the group is well positioned to make further progress in FY26.

The group has embarked upon its three-year transformation programme ‘Project Genesis’, which has the overall objectives to deliver a more integrated and efficient operating model, improve margins, and create a strong platform for sustainable growth.

The Business

Founded in 1918 in Wales as a farmers’ cooperative, with its shares gaining a listing on AIM in 2004, today Wynnstay is a leading supplier of agricultural products and services, with the ability to offer the whole package to farmers.

Spanning three main divisions: Feed, Arable and Country Stores, customers can access all the necessary farming inputs through a variety of distribution channels.

With over 20,400 commercial relationships with farmers, the group operates from 11 manufacturing sites across the country, with some 869 employees, as well as 127 commercial vehicles within its fleet.

Feed and Grain – Wynnstay manufactures and supplies compound and blended feeds for dairy, beef, sheep and poultry enterprises, supplies feed raw materials and delivers its crop trading and combinable crop marketing services through the unified GrainLink platform.

The consolidation of all trading activities under GrainLink has created a single, scaled commercial team with enhanced capability, broader geographic reach and improved customer access across Great Britain.

The division has a well-established presence in its core regions and remains central to Wynnstay's long-term growth ambitions

Arable – Arable supplies blended and straight fertiliser, a broad range of agricultural and environmental seed, and operates one of the UK's leading seed processing and distribution facilities.

Through the Glasson Fertilisers brand, Wynnstay is the country's second-largest fertiliser blender, offering high-quality, bespoke formulations to farming enterprises across the UK.

It supplies a wide range of seeds (spring, autumn, grass, maize, catch & forage, and environmental seeds), and operates a major seed processing facility in Shrewsbury, Shropshire.

Stores - Wynnstay operates 51 stores serving farmers, rural enterprises and local communities across England and Wales.

Stores provide a broad range of agricultural supplies, animal health products, farm hardware, clothing, feed, and rural living essentials.

The network is complemented by multi-channel routes to market, including a trading desk, direct-to-farm delivery, and a digital platform.

Management Comment

CEO Alk Brand stated that:

"FY25 has been a strong year for Wynnstay, with improved profitability and early, tangible benefits from the work completed in Project Genesis to simplify and strengthen the operating model.

We enter FY26 with a clear strategy, strong operational capability and a robust balance sheet.

Trading in the early part of the new financial year is in line with the Board's expectations, and we look forward with confidence as we progress into Wynnstay Strategy Genesis and pursue sustainable growth and improved returns."

The Equity

There are some 23.13m shares in issue.

The larger holders include TrinityBridge (9.92%), Milkwood Capital (6.55%), Schroder Investment Management (4.10%), Raymond James Wealth Management (3.94%), Canaccord Genuity Wealth (3.54%), IG Markets (3.17%), HSBC Bank (3.05%), Downing (3.02%), Teviot Partners (1.26%), and Hargreaves Lansdown Asset Management (1.05%).

Analyst Views

At Shore Capital Markets, its analysts Akhil Patel and Clive Black, have a net asset value on the group’s shares of some 575p each.

For the current year to end-October 2026, their estimates are for slightly higher revenues of £600.0m (£583.4m), while its adjusted pre-tax profits could come out at £10.0m (£9.2m), lifting earnings to 31.5p (28.0p) per share, with 18.2p (17.8p) of dividend.

The coming 2027 year could see £620.0m revenues, £11.0m profits, 34.6p earnings and a dividend of 18.5p per share.

My View

I really like this little group because its Management seems to be totally focussed upon improving the return on net assets for its shareholders.

That 22 years of unbroken dividend growth is merit-worthy and should appeal to all investors.

It has some £20m of undrawn banking facilities, capable of being used to improve its operations, while perhaps also looking at appropriate earnings-enhancing acquisitions.

As I stated last September, I see these shares, now 395p, easily going to 450p and above.

(Profile 01.12.25 @ 322.50p set a Target Price of 380p*)