NWF profits jump 10% in strong first half
NWF, the food, fuels and agricultural feed distributor hailed a “strong performance all round’ as half-year profits rose 10% to £2.2m.
The Cheshire company said revenue had rises 16% in the six months to November to £203.4m, with sales in the feeds and fuels division both increasing by more than 15%.
Chief executive Richard Whiting told TheBusinessDesk.com that the company had delivered not only a strong organic performance, cut debt, and a delivered on its strategic growth plan with the £3.3m acquisition of Eveson Fuels last month.
“Generally we are pleased with progress,” Mr Whiting said.
Wardle-based NWF said it was seeing some volatility in the food warehousing and delivery division, caused by mass promotions of certain product ranges by the major supermarket retailers, which causes logistical issues.
“Some days we can be delivering 100 loads, the next 180, which means we have to have both the manpower and the warehouse space available.
“We are working with both the supermarkets and the manufacturers to try ans smoooth-out this erratic demand.” He said NWF may have to increase prices to” reflect this variability”.
In feeds revenue increased by 17.7% to £48.5m as volumes and prices rose. Operating profit leapt three-fold to £1.5m.
Food sales increased by 8.3% to £22.3m, but operating profit fell to £1m compared to the record £1.7m in the same period the year before as a result of the volatility issue.
Revenue in fuels, driven by high oil prices, increased by 16.6% to £132.6m, while operating profit was maintained at £0.7m.
Since the half-year end Mr Whiting said the business had seen some impact during December’s bad weather. This included drivers being stuck on the M8 in Scotland and unable to make deliveries.
Looking ahead chairman Mark Hudson added: “The group continues to trade in line with management’s expectations and the board remains confident of the future prospects for NWF.”
