3rd Feb 2015 09:54
LONDON (Alliance News) - NWF Group PLC Tuesday posted a decline in pretax profit for its first half, as revenue was hit by lower commodity prices and the fall in oil prices.
The agricultural and distribution company maintained its interim dividend for the half year to end-November at 1.0 pence.
NWF posted a pretax profit of GBP2.1 million, compared to GBP2.9 million a year before, as revenue declined to GB247.1 million from GBP259.1 million, although this was partly offset by lower operating costs.
In its Feeds business, lower selling prices offset a rise in volumes and a contribution from its acquired SC Feeds business. NWF noted that farmers' milk prices have been falling, resulting in tougher conditions for its clients. In Fuels, revenue fell 6.9% due to lower oil prices and less demand for heating oil due to mild weather.
In Food, revenue rose 1.6%, and operating profit rose to GBP1.5 million from GBP1.1 million as NWF improved the efficiency of its operations.
NWF said its Feeds business is working to optimise animal diets to help mitigate the tough conditions for dairy farmers. The oil price has fallen further since the period end, but NWF said this has not hit its profitability in its Fuels business, and it has seen a return to more normal weather conditions.
"We have performed as planned since the period end," said Chairman Mark Hudson in a statement. "Overall the group is trading in line with the expectations of the board, and I look forward to updating shareholders later this year.'
Shares in NWF are trading down 1.6% at 126.00 pence Tuesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
Nwf