NWF off to a solid start

CHESHIRE distribution company NWF said it had made a solid start to its new financial year.

The food, fuel and farm feeds specialist said the business was trading “in line with management expectations” in the first quarter, with the management team focused on growth, but without increasing the AIM-listed group’s debt position.

Chairman Mark Hudson told shareholders at the annual meeting in Tarporley today that the three divisions were all coping with various issues.

The food business he said has been operating with “higher than anticipated levels of stock over the summer” as consumer demand for ambient groceries was more subdued than customers had expected, leading to the utilisation of overflow warehousing in the North West.

While this has been beneficial it has caused some operating inefficiencies.

The feeds division has managed the significant volatility in raw material costs by implementing price increases.

In fuels, where the first quarter represents only a very small proportion of the year’s overall business, oil prices have continued to be volatile, Mr Hudson said.

“We are continuing to pursue both new start ups and potential bolt on acquisition opportunities in this division,” he added.