NWF Group's maiden results to come in above expectation

1st Jul 2015 08:58

Agricultural and distribution business NWF Group said its full-year trading has been slightly ahead of corporate expectations thanks to robust volumes in the feeds division.In a trading update, the group noted the profits in the feeds division recovered during the second half despite the negative impact of milk prices movements and volatility in commodity prices.NWF's food division also remained strong driven by increased returns from the site in Wardle. It added it secured long-term contracts with key ambient food customers in the year ended 31 May, 2015.Furthermore, the drop in oil prices, an improved mix thanks to the sale of premium products, seasonal winter weather and the demand for heating oil post Christmas helped the fuels division to perform strongly.Also on Wednesday, NWF announced the acquisition of New Breed, an agriculture nutritional advisory business based in the North West of England and Scotland.Chief executive Richard Whiting said: "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."Shore Capital retained their 'hold' recommendation but said "we are increasingly warming to the NWF investment case which we will review again at the preliminary results stage".The group's full-year results will be published next month. Shares in NWF were up 1.56% to 137.1p on Wednesday at 0902 BST.