2nd Feb 2016 08:50
LONDON (Alliance News) - Agricultural and distribution company NWF Group PLC on Tuesday said its pretax profit dipped in the first half on lower revenue as it battled against weaker fuel and feeds prices.
NWF said its pretax profit for the half to the end of November was GBP1.8 million, down from GBP2.1 million a year earlier, as revenue fell to GBP224.6 million from GBP247.1 million.
The company said trading in the half was in line with its expectations but said it was contending with tough market conditions. Feeds and fuel volume growth was robust, driven by acquisitions but also solid organic growth, but lower oil and commodity prices drove down revenue for its Fuels and Feeds units.
The group said it will pay a flat interim dividend of 1.0 pence per share for the half and said current trading remains in line with its expectations.
"NWF has achieved a solid performance in the first half of the year despite difficult market conditions. The group made two acquisitions in Feeds and Fuels and was still able to report reduced debt as a result of its strong cash generative capabilities and effective working capital management," said Richard Whiting, NWF's chief executive.
NWF shares were down 5.5% to 162.00 pence early Tuesday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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