Wynnstay Share Discussion Threads

[diogenesj] 26/1/2005 15:10

Yes, I think that's about it, Chris. They'll need to do very well indeed (and much better than expected) to overcome the dilution. Genus has picked up nicely though, so perhaps you made the right choice. :-)

[chrisg] 26/1/2005 13:23

Hmm. Good rise on the results, and a few teasers about the future too. However, I can't help thinking that this looks fully valued for now. Unusually, it is probably more worthwhile to look at the diluted eps rather than the headline figure for WYN. This is because this September, the convertible loan holders get to be able to convert their loan stock into ordinaries, at the rate of 4 shares (after the subdivision last year) per £1 of stock. There is almost £600,000 of stock out there, which equals 2.4m new shares, which equals £6.84m of extra market capitalisation, which is quite considerable dilution bearing in mind the current market cap. Hence the need to use the diluted eps figures provided. On this basis, the shares are now on an actual p/e of much closer to 20 than 10, and despite the growth to come, I'm not sure that there is a huge amount more to go for here in terms of value.

Of course I could be wrong, but presumably the person who dumped 67,500 shares this morning at 10p below the bid has come to the same conclusion. This is a pity because its a good company, but it does look like it is all already in the price.

But I'll keep watching, just in case!

[currypasty] 26/1/2005 12:05

LONDON (AFX) - Wynnstay Group PLC said the new year has started well with
good demand across the group's three main business units -- feeds, arable and
stores.
Wynnstay today reported a 46 pct increase in maiden pretax profit for the
year to Oct 31 2004 to 2.6 mln stg from 1.8 mln a year earlier on turnover of
103.4 mln stg, up from 85 mln.
The group, which manufactures and supplies agricultural products and
services to farmers and country dwellers, increased the final dividend to 4.5
pence per share from 4.25 pence. Traditionally, the company does not pay an
interim dividend but the board said it will continue to keep this policy under
regular review.
Managing director Bernard Harris said he is confident the group will
continue to make good progress as there is now greater stability in feed
commodity prices and some small easing in fuel costs.
In addition, he said the group is in a strong financial position to take
full advantage of any possible acquisition opportunities.
The rationalisation of the agricultural supply business continues, driven
by the impact of the EU's reform of the Common Agricultural Policy, which is
aimed at making farmers more competitive and market-orientated. Against this
background, the group said it believes its business is well placed to take
advantage of the changing situation and to increase market share.
Chairman JE Davies concluded: "We believe our target of a 50 pct increase in
turnover over the next five years, based on organic as well as acquisitional
growth, is achievable."

[diogenesj] 26/1/2005 11:59

Nice rise today on good results. But they were nearer Shore Capital's (lower) forecast that the house broker W.H. Ireland's. Perhaps fair value at the current price (285p)?

[jonck] 26/1/2005 08:38

edit - deleted - posted in wrong thread

[gateside] 26/1/2005 07:56

LONDON (AFX) - Wynnstay Group PLC year to October 31 2004
Sales - 103.43 mln stg vs 85.01 mln
Pretax profit - 2.64 mln stg vs 1.80 mln
Operating profit - 2.58 mln stg vs 1.90 mln
EPS - 22.78 pence vs 16.33
Final div - 4.5 pence vs 4.25
Total div - 4.5 pence vs 4.25

[gateside] 26/1/2005 07:13

OUTLOOK

In 2005, we will see the introduction of the most radical changes to the Common
Agricultural Policy ("CAP") since its inception. At the heart of the changes is
the severing of the link between production and direct farm aid. Reform of CAP
will provide a catalyst for farmers to re-think their business strategies in
order to become more competitive and market-focused. We also believe the reform
will speed up the rationalisation trend that is already taking place in the
agricultural supply industry.

Against this background, the Group is in a strong financial position and we
intend to take full advantage of the opportunities that are available to gain
market share in all sectors. Over the year under review, we examined a number of
business opportunities, most of which were rejected as not meeting our strict
acquisition criteria with regard to potential returns and we will continue to
take a prudent approach with acquisitions.

The purchase of the Eifionydd Farmers Association in August 2003 has
substantially increased our customer base and there remains excellent scope to
increase sales of our goods and services to this new customer base.

We expect our three core divisions to continue to make good progress this year
and both the Stores and Feeds Division will benefit from the capital investment
we have planned this year to increase capacity and build sales. Sales within
the
Feeds Division are also benefiting from our partnerships with food suppliers,
such as The Welsh Meat Company, which guarantee participating farmers certain
commercial benefits. We are developing further similar specialist partnerships
within the food supply chain.

The new financial year has begun well. Demand remains strong across the three
major business units and there is now greater 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.

[gateside] 26/1/2005 07:12

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 record
results, with turnover exceeding #100m for the first time. All divisions
performed well and our results demonstrate the strength of our diversified
approach.

Demand remains strong across the three major business units and there is now
greater 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. In
addition, the Group is in a strong financial position to take full advantage of
any possible acquisition opportunities that meet our strict criteria."

[cambium] 09/1/2005 21:32

well spotted gateside, have a look at Lawrence too!

[gateside] 07/1/2005 17:08

Buys have easily outweighed sells all week.

[gateside] 05/1/2005 21:12

Results are due to be announced this month.

[gateside] 05/1/2005 21:04

COMPANY WEBSITE:

[shirishg] 08/12/2004 00:35

Post removed by ADVFN

[diogenesj] 07/12/2004 23:19

On the other hand, 8 ball, you should let your profits run, and it seems to me these could run some way yet. Still, a profit's a profit, and there's no arguing with that, and you've still got a few anyway. Well done, you got in much earlier than most (including me). :-)

[gateside] 07/12/2004 21:18

Well done 8 ball... a profit is not a profit till its banked!

Lokking forward to those results in January ;-)

[8 ball] 07/12/2004 21:09

Another good rise....

Decided to sell original investment of £1000 today(397).
This has left 750 shares, with an average cost of -0.06p each.

[currypasty] 07/12/2004 09:31

another good rise today, 265 - 275

[currypasty] 06/12/2004 15:57

another good rise today, 2.60 - 2.70 , up 7.5p

[currypasty] 03/12/2004 13:31

well, they cant have mine, I have to hold for 3 years for the tax advantages

[diogenesj] 03/12/2004 13:13

Can't see what's making it move: almost no trades reported yesterday or today. Only think I can think of is that someone is trying to fill a largish order (but that can't be easy when there are no trades). :-?

[currypasty] 03/12/2004 13:09

Just sat at previous high, one more tick, and its a breakout...lol

[gateside] 02/12/2004 15:34

I recently contacted the company and said that results will not be till January.

Could be plenty of upside in the run up to those results