Fuel and food distributor gears up for expansion after landing major contract

Trading at fuel and food distributor NWF Group is well ahead of expectations – according to a market update.

The specialist distributor of fuel, food and feed which is based in Cheshire said it expects overall trading for the half year will be ahead of prior year, with net debt as at 30 November 2019 in line with expectations.

The board said it remains confident of delivering its full year expectations.

The fuels division saw positive trading and two further acquisitions were completed.

There was positive trading across the network with the benefit of prior year acquisitions performing as planned.

The group announced two recent acquisitions completed since the AGM on 26 September.

• Caldo Oils Limited (‘Caldo’), a 5 million litre business in the North West which has been integrated into the Wardle depot, completed on 15 October 2019.
• Ron Darch & Sons Co Ltd (‘Darch’), a 35 million litre distributor based in Yeovil in Somerset with two depots and a complementary coal distribution business selling 5,000 tonnes per annum, completed on 2 December 2019.

The food divisions saw positive trading momentum maintained alongside a significant new contract win.

To support the contract and the continued organic growth from a number of other customers, the group has signed a lease to operate an additional, newly constructed 240,000ft2 warehouse in Crewe located close to the M6 and to the main Wardle site.

This warehouse will increase the capacity of the food division from 100,000 pallets to 137,000 pallets. The new site will be fully operational within six months. Brabners advised on the deal.

In the feed division demand continued to be robust across the first half with feed volumes ahead of prior year.

Chief executive Richard Whiting said: “We had a good first half and are trading in line with our expectations.

“During the period, we continued the expansion of NWF in line with our strategy; the two further Fuels acquisitions added to the three previously announced, increasing our annualised volumes by almost 30%.

“We are also significantly expanding the Food division with a major new contract and warehouse. We remain confident in our growth potential and prospects.”