Robust NWF boosted by fuels and feed divisions

NWF, the specialist distribution business reported robust trading in two of its three divisions and predicts half-year profits will be ahead last year.

The AIM-listed group headquartered in Wardle, Cheshire, said it had also managed to cut is debt as a result of keener working capital management in the six months to the end of November.

The group, which supplies feed to dairy farmers, fuel to businesses and individuals with oil central heating, and stores and distributes food for grocers and their suppliers, said trading had been in line with expectations.

It said its feeds division had traded ahead of expectations with the business effectively managing the significant increases and volatility of commodity prices by focusing on direct business with farmers.

The fuels business has also performed better than anticipated in the first half as a result of a return to more normal trading, increased demand for heating oil with the onset of some seasonal winter conditions, a lower cost base and rationalised tanker fleet.

By contrast, the Boughey food division has performed “slightly behind expectations” due to a slower recruitment of new customers is and lower-than-expected activity levels among of existing customers in a tough market environment.

NWF said it would report its half year figurs on January 29.