Agriculture group’s performance ‘significantly’ ahead of expectations

Cheshire-based agriculture company NWF Group has said its annual performance is “significantly ahead” of expectations, reflected by a focus on customer service and investments made by the business.

In a trading update for for the year to the end of March, NWF said its fuels division had an “excellent” year delivering “outstanding service” to customers across the country and performing particularly strongly in the cold winter conditions.

NWF said its foods division has been challenged by the take-up of significant new business, recruitment of staff and the reorganisation required to accommodate new customers at the Wardle site in Greater Manchester.

Performance has therefore been lower than anticipated as new customers and employees bed in, it said.

Meanwhile, the feeds division reported improved performance as anticipated due to the delivery on the investment made in prior years and improved trading conditions in the dairy market, where farmers are benefiting from improved milk prices.

Last year, the Nantwich-headquartered company invested £5.2m in mill developments in Longtown in Cumbria, which was acquired with the Jim Peet business in 2016, while the blending facility at Wardle has been automated which improves the production capacity for this growing segment of the market and increases efficiency.

NWF said net debt is lower than the board’s expectations and reflects the strong trading and further improvements in working capital management.

Richard Whiting, chief executive of NWF Group, said: “NWF has delivered an outstanding performance reflecting the focus on service across the group, particularly from the fuels business during the challenging winter conditions experienced earlier this year.

“It is also positive to demonstrate a return on the investment made in the prior year and to report a lower level of net debt.”