The Agriculture Division: This collection of businesses manufactures and supplies agricultural inputs including 300,000 tonnes per year of feed for animals. It offers a full range of animal nutritional products, e.g. feed blocks and has two compound feed mills and a blending plant of its own, but also uses third party mills to satisfy additional seasonal requirements or when customers are outside the area normally covered by Wynnstay’s (LSE:WYN) lorries.
Wynnstay also supplies fertiliser and seed (cereals, grass, forage, oil seed, pulses, roots, maize, catch crops, game cover, amenity seed).
Its Grainlink business offers farmers a grain marketing service with access to specialist milling, malting and feed markets. To the Shrewsbury office, GrainLink added a Grantham base in 2019.
The company also offers bespoke agronomy advice.
The main areas of operation are in Wales and central England.
The company’s reach has been steadily extended. Glasson Grain a Lancashire importer, shipper and trader of animal feed materials and fertiliser blender was bought in 2006. This business operates fertiliser blending manufacturing facilities at Winmarleigh, Goole and Montrose, and also sources from a facility at Birkenhead.
Wynnstay Woodheads Seeds, bought in 2010, operates a seed processing plant in Yorkshire, and trades grain and supplies fertiliser.
In 2015 it bought Agricentre which operates a network of eight units supplying a wide range of agricultural inputs including animal healthcare, dairy hygiene and animal nutrition products as well as feed related equipment and other hardware. Its units are located from Bristol to the Isle of Wight.
In 2017 a Montrose blending plant was acquired – the company intends to “build on” this presence in Scotland.
In 2018 the outstanding shares in the FertLink joint venture were acquired, helping to make Wynnstay the second largest fertiliser blending manufacturer in the UK.
Stanton Farm Supplies, which mostly delivers to dairy farmers using vans, was bought in April 2019 for £0.53m. It covers Avon, Dorset, Somerset and Wiltshire.
Specialist Agricultural Merchanting
This division has 54 “depots” – big sheds – open to the public as well as farmers, selling a very wide range of farming or rural pursuits products (25,000 different items). The way the company puts it is that the stores are for agriculture and for the rural and urban dweller with an interest in pets, horses, and also for people with a plot of land too large to call it a garden.
Most of these stores are in Wales or central England, as far south as the M4. However, there are now three stores in Devon/Cornwall/Somerset, one in Salisbury and a handful in Lancashire and Yorkshire.
Online sales are increasingly important.
The wholly-owned Youngs Animal Feeds provides equine and small animal feeds for Wynnstay stores and other wholesalers and retailers in the West of the UK.
Joint Ventures and an Associate
It has three joint venture business:
Wynnstay was a mere £12m turnover company in 1988. In 1992 it became a PLC and joined OFEX in 1995. When it moved to AIM in 2004 it was a £16.5m MCap company employing 340 people (it now has about 1,000).
By then its trading area covered Wales, th………………To read more subscribe to my premium newsletter Deep Value Shares – click here http://newsletters.advfn.com/deepvalueshares/subscribe-1
Prof. Glen Arnold
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