Margins pressured by milk prices at animal feeds business

NWF, the Cheshire-based agricultural feeds, food logistics and fuel distribution business, has said its feeds business remains under pressure as a result of lower milk prices in the UK.

In the Food division, the business has had higher than anticipated storage requirements and is using outside storage on a flexible basis to meet this. Distribution demand has followed a normal seasonal pattern and service levels have been maintained at 99.7%.

Meanwhile, the company’s Fuels business has performed as planned across the quieter summer months against a backdrop of volatile and generally lower Brent crude  prices, which have fluctuated between $65 and $45 per barrel since the period end.

Mark Hudson, chairman, said that the first quarter is traditionally the company’s quietest trading period of the year.

“Trading has been in line with the board’s expectations and ahead of the same period last year, with net debt reflecting the normal seasonal fluctuations.

“The board’s outlook for the year remains in line with its expectations and we continue to focus on development opportunities, both organic and through targeted acquisitions,” he added.