29th Jan 2019 09:40
LONDON (Alliance News) - Fuel, feed, and food distributor NWF Group PLC on Tuesday reported strong interim revenue growth, though profit has remained flat.
NWF's revenue for the six months to November 30 increased 12% to GBP330.5 million, but pretax profit stayed flat at GBP1.9 million.
Adjusted pretax profit rose 9.1%, however, to GBP2.4 million.
NWF is paying an interim dividend of 1.0 pence per share, the same as corresponding period a year prior.
"NWF has delivered profit improvement in line with our expectations in the first half year with each of the divisions performing as planned," said Chief Executive Richard Whiting.
"The profit recovery in Food and the strong performance of Feeds over the summer are of particular note. It was pleasing to report delivery on our strategy with the acquisition of Midland Fuel Oil Supplies after the period end."
"Current trading is in line with the board's expectations for the full financial year," he added.
Fuels revenue rose 12% to GBP222.4 million, on the back of higher oil prices, despite volumes falling 2.2% to 263 million litres. Headline operating profit dipped to GBP900,000 from GBP1.1 million.
In Food, NWF posted a 22% increase in revenue year-on-year to GBP23.8 million, and headline operating profit inched up to GBP1.0 million from GBP900,000.
Storage volumes rose to 96,000 pallet spaces from 89,000 year-on-year, due to new business won.
Lastly, in Feeds, NWF increased revenue by 8.4% to GBP84.3 million due to a rise in volumes and increased commodity prices. Headline operating profit was GBP700,000 from GBP400,000 year-on-year.
Feeds volumes increased 5.3% to 279,000 tonnes as farmers used more feed, NWF said, especially over the summer when grazing conditions were poor.
Looking ahead, Food activity is continuing to be at a high rate, while NWF has successfully delivered the seasonal increase in Fuels over the winter. In Feeds, volumes have fell slightly recently after outperformance in the first half.
NWF shares were 4.0% lower on Tuesday at 173.70 pence each.
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