LONDON (ShareCast) - (Sharecast News) - Wynnstay Group reported a strong recovery in profitability for the six months ended 30 April on Tuesday, supported by operational improvements and early benefits from its Project Genesis transformation programme.
Adjusted profit before tax rose 41% to £5.4m from £3.8m a year earlier, despite a 7% fall in revenue to £304.9m due to lower feed and grain trading activity and softer commodity prices.

Gross profit increased 7% to £42.0m, reflecting improved unit margins and disciplined cost management.

"The group has delivered a strong recovery in the first half, with the improved profitability reflecting the benefits of our operational initiatives," said chief executive Alk Brand.

"Project Genesis is progressing well and, together with ongoing investments, supports our ambitions to create a stronger, fitter business, which provides our customers with the highest service levels and our shareholders with improved returns."

The feed and grain division posted higher adjusted profit of £0.9m, despite revenue falling to £160.5m as manufactured feed volumes dropped 6% and grain trading volumes slipped 13%.

Wynnstay said its arable business saw profit jump to £1.4m on stronger fertiliser and seed sales, while the stores division delivered steady growth with profit rising to £3.1m.

"We now have a refreshed executive management team in place, which is focused on integration, execution, and driving shareholder returns," commented chairman Steve Ellwood.

"Project Genesis is firmly established and progressing well, and we expect to complete the development of our group growth strategy in the second half."

The board declared an increased interim dividend of 5.7p, up from 5.6p last year, and said trading so far in the second half is in line with expectations.

It said it remained on track to deliver a stronger full-year performance in line with market forecasts.

At 1300 BST, shares in Wynnstay Group were up 0.82% at 370.5p.

Reporting by Josh White for Sharecast.com.

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