Fuel, food prices impact NWF Group revenues

The AIM-traded agricultural and distribution business saw revenue drop 9.1% in the six months to 30 November 2015, to £224.6m.

Its headline operating profit was stable at £2.8m, with headline profit before tax increasing 4% to £2.6m.

Headline basic earnings per share was up 7.5% to 4.3p, and the company would pay an interim dividend of 1p per share - the same as the previous corresponding period.

NWF reduced its net debt during the period by 16.1%, to £10.4m, making a net debt to EBITDA gearing of 0.8x - down from 1.1x a year earlier.

"NWF has achieved a solid performance in the first half of the year, despite difficult market conditions," said chief executive Richard Whiting.

"The group made two acquisitions in Feeds and Fuels, and was still able to report reduced debt as a result of its strong cash generative capabilities and effective working capital management."

Whiting said current trading was in line with the board's full year expectations.

During the period, NWF saw volume growth in Feeds and Fuels, which it said reflected its headline growth and the contribution of acquisitions.

It blamed the decrease in revenue on significantly lower oil prices in Fuels, and lower commodity prices in Feeds.

The company said it had good cash generation with a reduction in net debt, despite completing the two acquisitions.

Headline operating profits across the three divisions were £0.3m in Feeds, up from £0.1m in 2014; £1.4m in food, down from £1.5m in 2014; and £1.1m in Fuels, down from £1.2m a year earlier.

Looking ahead, NWF Group said it maintained significant financial flexibility during the period for future investment growth initiatives.