Agriculture group profits up to £8.3m
CHESHIRE-based agriculture group NWF has enjoyed a 2.5% rise in pre-tax profits to £8.3m in the year to May 31, despite a 5.4% fall in revenue.
Turnover dipped from £491.3m in 2015 to £465.9m because of lower oil prices in its fuels division and the impact of lower commodity prices in feeds.
The profit increase was driven by a good performance in its food business and some recovery in feeds.
Meanwhile, earnings per share were a record 13.6p (2015: 13.2), up 3%.
The Nantwich-headquartered company said its three strategic acquisitions – New Breed and Jim Peet Agriculture in the feeds division and Staffordshire Fuels in its fuels division – were performing to plan.
Strong cash generation leaves net debt at 0.8x EBITDA despite investing £10m in development capital.
Chief executive Richard Whiting said the results allowed the company to increase its full year dividend 6% to 5.7p.
He told TheBusiness Desk: “NWF delivered a robust performance last year.
“The increase in profitability and cash generation allowed the group to invest £10m in development capital including three acquisitions, to support the strategic goals of the group.
“Acquisitions are the most difficult way of expanding, so our intention is to continue performing, integrating and developing with a focus on agriculture.
“We continue to see opportunity for further strategic and operational progress and performance to date in the current financial year has been in line with our expectations.”
