NWF Group FY headline pre-tax profits projected to beat expectations

Animal food manufacturer NWF Group said on Friday that it had put on a "strong overall trading performance" in the fourth quarter and as a result, full-year headline pre-tax profits were now expected to be ahead of market expectations.

NWF highlighted that all of its divisions had remained fully operational throughout the Covid-19 pandemic, with safe methods of working and home working implemented where possible.

The AIM-listed group stated its fuels unit had turned in a "strong performance ahead of expectations", with a continued mix improvement from heating oil and gas oil, while trading in its food business improved in the second half, in line with expectations following more stable demand patterns and improved business efficiency.

In NWF's feeds division, margins came under pressure during the winter months amid commodity price increases and reduced visibility in November as a result of a cyber incident that saw its IT systems hacked.

Net debt at the year-end was now projected to be lower than previous expectations thanks to the stronger trading result, as well as ongoing disciplined cash management across the group and a lower than planned capital expenditure.

As of 1020 BST, NWF shares were up 7.14% at 217.50p.