NWF flags up profit fall

NWF Group, the Cheshire specialist agricultural and distribution business, has warned that its half-year profits will be below last year’s record result of £3.3m.

The AIM-company said trading conditions in the six months to the end of November had been “challenging” as a result of the significant falls in commodity prices which have impacted margins in its agricultural feeds business.

Revenues in its fuels business have been hit by recent falls in the oil price, but profitability has not been adversely affected.

Focusing on its three divisions, NWF said although volumes in feeds remain robust,  margins were hit by both the price falls in the commodity markets and the announcement of reductions in milk prices across the UK.

In the food division, the business has delivered a good result from the single Wardle site managing the demand peaks for Halloween and Christmas effectively. Service levels have been maintained at 99.7%.

Meanwhile, the fuels business has “performed as planned” in spite of warmer than normal weather conditions which reduced demand for heating oil.

The significant falls in oil prices have been broadly beneficial and additional sales of premium products have helped mitigate the impact of the mild weather, the company added.

NWF said it would publish its results for the six months to November 30 on February 3.