NWF delivers 'encouraging' headline operating profit growth

NWF said headline pre-tax profits were lower than the prior year, reflecting increased IFRS16 interest arising from the acquisition and fit-out of its Lymedale warehouse.

In its fuels unit, volumes were in line with the prior year, but with improved margins and the benefit of a lower cost base. In its food arm, the business saw increased stock levels as its Lymedale warehouse was filled, and its feeds division reported volumes that were ahead of the prior year, reflecting an increase in the overall market following the wet summer and autumn and an increasing milk price supporting feed demand.

The AIM-listed group highlighted that cash generation focus "remained strong" in the period and said it retains "a robust financial position".

"The group delivered a solid first-half performance, in line with the board's expectations. With the winter months to come, which are typically more material to the group's performance, the board's expectations for the full year are unchanged," said NWF.

As of 1030 GMT, NWF shares were up 0.57% at 155.0p.

Reporting by Iain Gilbert at Sharecast.com