NWF Group improves earnings despite challenging market

NWF Group reported a “robust performance in challenging market conditions” in its final results for the year to 31 May on Wednesday, with a revenue decrease of 5.4% to £465.9m reflecting lower oil prices in the Fuels division and the impact of lower commodity prices in Feeds.

The AIM-traded company posted an increase in headline profit before tax of 2.5% to £8.3m, however, driven by a good performance in Food and some recovery in Feeds.

It also reported record headline earnings per share, rising 3% to 13.6p.

Three strategic acquisitions were integrated during the year and are performing to plan, the board said, with strong cash generation leaving net debt at 0.8x EBITDA despite investing £10m in development capital, including the three acquisitions.

Headline operating profit in the Feeds division was £2.1m, up from £1.8m.

The unit reported profit improvement from both the core business and acquisitions with increased market share, despite a “challenging year” in the ruminant feed market with lower milk prices and a reduction in demand for feed.

In Food, headline operating profit was £2.7m, up from £2.5m, while in Fuels it dropped to £3.9m from £4.3m.

“NWF delivered a robust performance last year,” said chief executive Richard Whiting.

“The increase in profitability and cash generation allowed the group to invest £10m in development capital including three acquisitions, to support the strategic goals of the group.

“We continue to see opportunity for further strategic and operational progress and performance to date in the current financial year has been in line with our expectations,” Whiting added.