NWF shows resilience in tough times
NWF Group, the Cheshire-based fuel, animal feed and food logistics company, has hailed a resilient performance as profits increased amid tough trading.
The AIM-listed company based at Wardle said market conditions in its feed manufacturing and distribution business were particularly challenging given the record low milk price, which means many farmers are producing at a loss.
In the six months to the end of November 2015 NWF grew profits 4% to £2.6m, despite a 9.1% fall in revenues to £224.6m, which was caused by significantly lower oil prices in fuels and lower commodity prices in feeds.
Chief executive Richard Whiting told TheBusinessDesk: “All in all we are pleased with the results in what has been a pretty tough first half. Profits are up, we’ve made two acquisitions and still reduced net debt.”
He said there were few signs that milk prices would move upwards any time soon.
“It’s around 24p per litre yet the average cost to produce it its 26p, so it’s a very tough time for farmers and there is no signs that the supermarkets will increase what they pay.”
Mr Whiting said NWF is currently trading in line with full year expectations and would continue to look for acquisition opportunities to strengthen all parts of the business
The company held its interim dividend at 1p per share. Net debt was down 16% to £10.4m.
