NWF in the market for targeted acquisitions
NWF, the Cheshire-based fuel, food and animal feeds supplier to farms has told the stock market this morning that it is in the market for acquisition opportunities.
In trading update for the financial year ended 31 May 2024 the company said volumes in fuel sales remained ahead of the prior year, in part benefitting from increased commercial customer orders as the mild weather across the winter resulted in low demand for domestic heating oil.
Chris Belsham, chief executive said: “NWF has delivered a solid financial performance as it experienced more challenging conditions than in recent years, with market pricing normalising for Fuels and Feeds, the impact of which has continued into the new financial year.
“The investment in the new Lymedale warehouse to meet the growing customer demand in our Food business has progressed in line with plan which will support the future growth of the business.
“We continue to focus on our long-term growth strategy of development through targeted acquisitions, organic investment including significant investment in new fleet and improvement initiatives, supported by our strong financial position and confidence in NWF’s potential and prospects.”
The business has net cash at the year-end of £10m which it says is in line with market expectation and reflects their effective working capital management and the benefits of an investment in a new warehouse at Lymedale Business Park in Newcastle-under-Lyme, Staffordshire.
The robust financial position supports the strategic focus on targeted acquisitions in Fuels, and the increased level investment during FY24 and FY25 in Lymedale and the new fleet.
Broker Panmure Gordon has issued a BUY note on the shares.
