Agricultural group Wynnstay has enjoyed a record start to the year after seeing revenues for the first half clock in at £335.7 million.

That was 34 per cent more than last year – and the Llansantffraid-based agricultural supplies company also saw pre-tax profits increase by 78 per cent to £9.6 million, from GBP5.5 million the previous year.

The company cited a "firm market backdrop" and significant one-off gains from fertiliser blending activities for the strong results.

Commodity price inflation accounts for £80 million of the overall revenue increase, it estimates.

The company does not expect these exceptional gains to be repeated in its second half but current trading is "positive" thanks to firm farm gate prices.

"These record interim results have been underpinned by a favourable sector backdrop, with strong farm gate prices across most sectors and positive farmer sentiment, as well as significant one-off gains in our fertiliser blending activity," said chief executive Gareth Davies.

The company has declared an interim dividend of 5.40 pence, up eight per cent against the 5.0p dividend a year ago.

Shore Capital Markets Ltd analyst Akhil Patel said: "We continue to believe Wynnstay is very well-placed structurally and operationally to take advantage of current market dynamics, increased on-farm sentiment and the expected near-term increase in on-farm investment."

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