NWF sells garden centres
QUOTED distribution business, NWF Group, has completed the sale of its garden centre division.
The six centres spread across Lancashire, Cheshire, South Yorkshire and Nottinghamshire have been bought by Suffolk-based Notcutts for £14.5m.
NWF, based in Nantwich, Cheshire, has been keen to sell the subsidiary so it can focus on its core business – the distribution of groceries, animal feeds and fuels. Advisors at KPMG’s Manchester office handled the disposal.
In the 12 months to May the garden centres had sales of £21.8m, but made a loss after tax of £300,000. The division had assets valued at £15.3m.
NWF plans to use the sale proceeds to reduce its debt and strengthen its balance sheet. In the year to May the group saw sales rise nearly 21% to £361.2m but pre-tax profits were down from £5.8m to £4.2m.
Chief executive, Richard Whiting, said: “The disposal of the garden centres provides the opportunity to rationalise and focus NWF on its three specialist and profitable distribution divisions and exit the retail market.”
Ahead of NWF’s AGM later today chairman Mark Hudson said trading in the first quarter was in line with expectations and showing signs of improved profitability.
