Wynnstay Share Discussion Threads

[gateside] 03/5/2005 13:05

Surely this can't fall much further.

Don't quite understand why is has fallen so, as there was a good upbeat AGM statement a month ago.

Any thoughts anyone?

[padi] 28/4/2005 18:41

I've just been having a read of the NWF trading statement. It looks like the problems they're experiencing relate to internal expansion difficulties and high fuel costs. I understand that high fuel costs may hit WYN but thats about it, all other news to date seems positive.

I think labour costs were mentioned also but I can't understand how labour costs can increase (within 6 months) to an extent that a trading statement is required.

Its a risky strategy but im tempted to pick up some more before the interims are released.

[getscenic] 28/4/2005 14:06

padi,
think it's more to do with NWF warning see chart above.
If you belive what was said at the AGM don't think anything to worry about, this could be a good opp. to add a few more, but will wait for the dust to settle.

[padi] 28/4/2005 13:43

Can't understand fall of 4% today. Dividend was 4.5p so why the fall of 10p. The news released today is positive. Directors accepting shares at full market price rather than dividends surely suggests that Directors think the shares have further upside.

[gateside] 26/4/2005 17:38

Whole sector seems to be slipping at present.

[padi] 22/4/2005 17:10

Tipped as a "buy" in Investors Chronicle today due to growth expectations, good dividend yield and low PE. Price up marginally today. I guess we'll have to wait until results day to get some real media exposure.

[8 ball] 05/4/2005 18:58

The retail site in Newtown is very poor, so the new store will be good.
The houses in Abermule appear to have sold well.

Yes..The AGM spreads are very good, however I have missed the last two in Shrewsbury.
Some of us still need to work for a living even after 200% profit on this stock.

[gateside] 22/3/2005 07:33

AGM STATEMENT

Wynnstay Group, the agricultural supplies and services business based in Wales,
will be holding its Annual General Meeting today and Chairman, John Davies, will
issue the following statement on current trading,

"Trading in the first four months of the new financial year has been in line
with expectations and the Group continues to benefit from the broad spread of
its agricultural activities.

The Feeds Division saw some reduction in demand for animal feeds as a result of
the mild winter weather but the Arable Division benefited from the favourable
planting conditions for cereal seeds. Our Retail Division continues to make good
progress, with strong demand in pet and equine products. It is also seeing
encouraging results from its programme to upgrade those stores acquired with the
purchase of Eifionydd Farmers Association. Foxmoor Limited, the pot plant
producer, which now trades as a fourth division within the Group, has a full
order book from major retailers and garden centres for both the spring and
summer periods.

In joint ventures, Wyro Developments has sold the first two phases of its
housing development at Newtown, in Powys, and has started work on a
company-owned site in North Wales."

[getscenic] 21/3/2005 14:00

and they lay on a lovely spread!

[gateside] 21/3/2005 13:48

ANNUAL GENERAL MEETING is tomorrow

The Annual General Meeting of Wynnstay Group plc will be held at The Lord Hill
Hotel, Shrewsbury on the 22 March 2005 at 11.45am.

[dgwhughes] 12/3/2005 11:51

Could someone post the IC article please..save me a trip to Borders to read it :)

[gateside] 11/3/2005 09:50

getscenic... It has been tipped in IC this morning

[getscenic] 11/3/2005 09:44

allways happens, i was looking to top up today.
can't see any reason for this.

[currypasty] 11/3/2005 08:21

IC magasine

[gateside] 11/3/2005 08:15

10 Buys in the first 10 minutes ~ Can only assume that this has been tipped somewhere. Good to see it has caused it to tick back up in price :-)

Anyone know where it was tipped?

[gateside] 11/3/2005 08:14

10 Buys in the first 10 minutes ~ Can only assume that this has been tipped somewhere. Good to see it has caused it to tick back up in price :-)

Anyone know where it was tipped?

[gateside] 08/3/2005 20:04

Looking oversold now, I would be supprised if it dropped any further, but you never know.

However, Long Term the fundamentals look sound.

[gateside] 10/2/2005 17:30

Wynnstay Group has applied for planning consent to build a £1 million superstore at Newtown.

[eastbourne1982] 07/2/2005 21:13

Net assets over 20 million, profits over 2.5 million, hardly any debt, looks a no brainer in the long term. Not one of the most exciting shares out there but certainly likely to provide decent returns. Similar to a share I recently bought into FNT (Fountains), very similar kind of situation.

I will be monitoring these as the growth potential is reasonable whilst the possible downside appears very limited.

[jakass] 07/2/2005 21:03

All good stuff, gates.

[gateside] 07/2/2005 19:55

From armshare.com

Wynnstay Group PLC
Report updated: 28th January 2005

Wynnstay Group, which used to be Wynnstay & Clwyd, is a Welsh and Welsh Border Counties-based company which manufactures and sells ruminant feed, distributes fertiliser and related products, and owns a rural retail chain. The company has in recent years faced the familiar litany of UK agri-business horrors, emanating firstly from the beef export ban; then the strength of the green pound which dampened the activity levels of its customers; and to complete the witches' brew, foot-and-mouth disease.

But in May 2004, the company, which had been an OFEX stalwart, moved to AIM raising £1.5 million at 190p per share in the process.

Good corporate husbandry has unflinchingly demonstrated the ability steadily to advance in the teeth of problems. Other characteristics of the group are the ability carefully to price and successfully to integrate bolt-on acquisitions; and a willingness to enter into co-operative structures. So it was then, that in addition to the three trading divisions, there were joint ventures and associate companies engaged in activities as diverse as the development of group sites for own use or for investment or sale, the manufacture and distribution of equine and pet foods, the distribution of fuel oils and the production of cut flowers and pot plants for major multiple retailers and garden centres. However the last-named activity has now been acquired in toto.

The earnings record is excellent marred by the fact that in 2003 - of all years - a £600,000 bad debt struck hard. The dividend policy is progressive. An impressive ability to generate its own funds has always been the cornerstone of the balance sheet, and the £1.5 million injection served to help eliminate the trifling borrowings, including the convertible loan stock created to acquire the assets of Eifionydd Farmers, which added eight more to the already considerable retail stores base.

At a time when the plight of the rural economy commands many column inches in the national press, Wynnstay has been an example of what an unflustered board which knows its business can achieve by way of market penetration. The depressed 2003 earnings figure was bounced into history by the time of the latest report - 23p per share. There is an interesting move into joint ventures in the provision of branded foods for the big retailers. The stores business - and there are 24 of them now - in addition to the catering for the specialised customer profile, represents the prime outlet for a growing range of branded petfoods, and in addition is engaged in the supply of animal pharmaceuticals.

The consequences of the natural forces (the weather) in terms of subsequent availability and price of the raw materials which are central to the group, and how these interact with the two main divisions are difficult for the private investor to eveluate even if comfort can be drawn from good world-wide harvests this year. The consequences of the ebbing and planned removal of agricultural support prices on the spending patterns of the group's farming customers are unknown. But the history of the company is testimony of the management's ability to cope with changing circumstances from a strong core of permanent demand - to which we can probably add four other factors.

In ascending order of importance, the first is that of a raft of extraneous activities which - as it happens - did not contribute much this year, but will swing in next year, especially property which has absorbed a fair bit of development capital this year. The second is the elimination of borrowings and perhaps the generation of interest. Thirdly, being allowed to ignore the amortisation of goodwill - a figure which has spiralled as a result of the accounting treatment of the Eifionydd acquisition - will kick in heavily.

But outweighing all of these by far are the benefits which are expected to accrue from the step-change in generated profits which the integration of those retail outlets will bring. Successful execution of this step-change is vital, for the convertible loan stock by which this acquisition was made means a future share issue of 2.4 million to add to the 8.7 million extant, a considerable dilution.


Research Standing

Supporters will fully expect strong current-year progress to counter the effects of dilution, and, when this becomes evident, the shares could move to a proper multiple too. But hard work needs to be done. Tuck away.

[gateside] 07/2/2005 19:44

Yes i agree with your calculations of the NAV being just under 250p, and after the rapid price rise in December, this might tred water for a while. Though I will be holding my shares for the longer term, as the wide spread means that this is not a share to trade. Having bought these at 195p last summer, I am very pleased with my investment to date. At some future point I expect they will pay an Interim dividend and this will make the yield more attractive. I also feel that their stores division will add good value to the group in future and that this and any possible future acquisitions will add to Earnings Growth.

[paulismyname] 04/2/2005 22:12

Gateside, stumbled across this by accident as believe it or not I clicked the wrong toobar on the computer. It may however be of some modest good fortune.

Several questions.

Calculated that the NAV is around £2.47 per share. At todays close mid price of £2.87 that puts the share price at a premium to assets of around 14%. Do you agree with this calculation, and do you have a view if it is justified

Earnings growth over next year may be factored into the share price if correct - hence little room for share price growth, views?

PE of 12 and yield seem okay but cannot figure out why the PEG is well below 1, any views there. But that might relate to the question below

General question, I thought that UK farmers were up against it due to the pricing power of supermarkets, clearly wyn having started as a Co-Op has by-passed that issue. However would that fact eventually put a limit on earnings growth.

Regards

Paul

[8 ball] 29/1/2005 20:43

I have always felt that Wynnstay's asset value and no debt give it the edge.
Then again I am an asset type investor, so it's all IMHO.
The gap between the two companies has closed in the last few years however.

The property development work with WYRO is very good.
I live rather close to the Development in Abermule and it looks a great investment.

The fuel side is better with NWF, However theirs a private company in the area that would fit into the Wynnstay group like a glove and increase that and other areas of the group.

I must mention it at the next AGM..

[mw8156] 29/1/2005 14:04

Could be that NWF is better positioned infuel, distribution where it is expanding at great speed, and garden centres than Wynnstay though it has a large pension deficit and is more highly rated with less asset backing. You pays your money and takes your choice but things will be clearer on Monday.