2nd Feb 2021 11:14
(Alliance News) - NWF Group PLC on Tuesday posted a reduction in its first half earnings but expressed confidence in its outlook on increased demand in the second half so far.
For the six months ended November 30, NWF posted pretax profit of GBP2.0 million, down 17% from GBP2.4 million. This was as revenue fell 11% to GBP309.4 million from GBP348.9 million as a result of the lower price of oil and lower volumes in its Feeds division.
As at the end of November 2020, Brent oil was trading at USD47.59 per barrel, down from USD61.87 at the end November 2019.
By division, Fuels revenue fell 16% to GBP205.7 million as a result of lower oil prices more than offsetting the increase in volumes sold, Feeds revenue declined 3% year-on-year to GBP76.2 million as a result of lower volumes more than offsetting the increase in feed prices. While Food revenue increased 13% to GBP27.5 million, operating profit was hurt by significant demand volatility.
The interim dividend was maintained at 1.0p per share.
Looking ahead, Chair Philip Acton said: "Following the solid first half, the group has continued to perform as planned since the period end. In Fuels, demand for heating oil increased as expected as we move into the critical winter trading period, with acquisition activity now back underway. In Food, volatility has continued with activity levels reflective of the unusual Christmas trading period this year and Brexit stock taken on to support customer requirements which will be utilised in the coming months. In Feeds, volumes have increased as we move into the key winter months and there have been further increases in commodity prices since the period end.
Our financial position is strong and we continue to focus on development opportunities, both organic and through targeted acquisitions. Overall, we remain confident about the group's growth potential and future prospects and continue to trade in line with the Board's expectations for the full financial year," he added.
Cash held on November 30 was GBP3.8 million, up from GBP1.8 million at November-end 2019. Net debt was GBP16.5 million, up from GBP14.9 million.
Shares in the animal food manufacturing company were trading 0.4% lower at 189.20 pence each on Tuesday morning in London.
By Ife Taiwo; [email protected]
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