1st Jul 2015 08:43
LONDON (Alliance News) - Specialist agricultural and distribution business NWF Group PLC said Wednesday its trading for the year to end-May has been slightly ahead of its expectations, and said it has acquired agriculture nutritional advisory business New Breed (UK) Ltd for an undisclosed sum.
In the company's Feeds division, profitability recovered in the second half against a backdrop of falling milk prices in the UK and volatility in commodity prices, which has continued to put pressure on NWF's margins. In its Food business, it remained at full capacity throughout the year and made further progress securing some long-term contracts, it said.
Its Fuels division continued to perform strongly, NWF said, boosted by the fall in oil prices and improved product mix.
NWF said that acquisition New Breed is a profitable business and will be run as a stand-alone part of the group. It is expected to add to earnings immediately.
"NWF delivered another solid performance last year. We continue to make good progress as a result of targeted initiatives in all three of our divisions. The bolt-on acquisition of New Breed is in line with our stated strategy to expand within Agriculture, and we look forward to working with its management team to develop the business further," said Chief Executive Richard Whiting in a statement.
NWF will announce its full-year results on August 4.
Shares in NWF were trading up 3.1% at 139.12 pence Wednesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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