NWF Group reports on weaker first half

Specialist agricultural and distribution business NWF Group announced a trading update for the half year to 30 November on Monday, reporting that trading for the period was lower than the prior year as a result of a weaker first quarter.

The AIM-traded company said trading had been better in recent months, and the board maintained its full year expectations in terms of performance and net debt levels.

In the feeds division, NWF said trading was impacted by lower market demand for ruminant feed, particularly in the first quarter, and a rapid increase in commodity costs.

“In food, the business met increased demand for storage and distribution from customers efficiently,” the firm’s board said in a statement.

“Service levels were maintained at 99.7% and the Wardle warehouse remains fully utilised.”

The fuels division was impacted by warm weather and lower demand for heating oil during the summer and early autumn, it reported, although that was partially offset by a strong performance in November.

“The acquisitions of New Breed, Staffordshire Fuels and Jim Peet made in the prior year have performed as expected and the mill expansion plans are being successfully delivered.”

NWF confirmed it will announce its results for the half year ended 30 November on Tuesday 31 January.