NWF Group finishes year in line with expectations

Specialist agricultural and distribution business NWF Group issued a trading update for the financial year to 31 May 2017 on Tuesday, confirming that trading for the year was ahead of the prior year and in line with market expectations.

The AIM-traded company said that in the feeds division, trading improved in the second half, albeit the year as a whole was down on the previous year after being impacted by the later-than-planned opening of its northern feed mill, and the previously-reported margin pressure from increasing commodity costs.

In the food division, the business performed well and ahead of the year before, efficiently meeting demand for storage and distribution from customers.

Service levels were maintained at 99.7% and the division was actively seeking additional business to fully utilise space in 2018, the board reported.

The fuels division performed well, and in advance of the previous year, both in developing business at existing depots and expanding the activity of new depots established in the last two years.

Net debt was said to be in line with the board's expectations, and reflected the development investment undertaken during the year.

NWF said the feeds mill development programme had now been completed and was expected to deliver its planned benefits.

The delayed opening resulted in some additional exceptional costs being incurred, however.

“NWF has delivered another solid trading performance,” said chief executive Richard Whiting.

“Investment in mill infrastructure in the feeds division and strong performances from food and fuels have continued the development of the Group and demonstrate its ability to successfully navigate volatile economic conditions.”

NWF said it will announce its final results for the year ended 31 May on 1 August.