24th Jun 2014 08:07
LONDON (Alliance News) - Shares in NWF Group PLC opened higher Tuesday, after the company said it expects its financial results for the financial year just ended to be at the upper end of market expectations.
In a trading update, the specialist agricultural and distribution business said that trading for the year ended May 31 was positive, driven by strong trading in its feeds business, which supplies ruminant animal feed for cows and sheep to farmers up and down the UK.
NWF said its feeds business has seen trading boosted by the acquisition of Staffordshire-based animal feed manufacturer SC Feeds Ltd in November last year.
"This division has continued to increase market share, particularly in the dairy sector, despite market demand being more subdued than the unusually high demand for ruminant feed in Spring 2013," the company said in its statement.
NWF said its fuels division, which represents the biggest division for the group in terms of revenue, performed well during the year, despite significantly lower demand for heating oil on the back of a mild winter and spring in the UK.
The company said it has secured long-term contracts with customers in its smaller food division, which it said will underpin the division's future performance.
NWF also said that it has agreed a new long-term funding facility with the Royal Bank of Scotland Group PLC, for five years through to October 2019. It said its facilities have now been increased to GBP65 million, which will support both development and its future growth plans.
The company said it will release its full-year results on August 5.
NWF shares were up 4.6% at 162.70 pence early Tuesday.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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