Soft commodity prices hit NWF sales

2nd Feb 2010 09:27

Revenue from the food distribution business is holding up at distributor NWF but the feeds and fuels divisions saw sales dip as commodity prices softened.Group revenue from continuing operations fell 11.4% to £175.5m in the six months to 30 November from £198.1m a year earlier.Revenue from food distribution remained static at £20.6m, but the feeds division saw revenue dip 16.6% to £41.2m while the fuels side saw sales eased 11.3% to £113.7m.Profit before tax rose 11.1% to £2m from £1.8m the year before.'The group has continued to demonstrate its defensive qualities by delivering robust results in a poor economic and financial environment,' claimed Mark Hudson, chairman of NWF. Net debt at the end of November had been reduced to £17.5m from £29.7m a year earlier.'Given that all three divisions are continuing to demonstrate good performance levels and that the group is trading in line with expectations the board remains confident of the future prospects for NWF,' Hudson added.The interim dividend has been held at 1p.