N.W.F Group (LON:NWF), the specialist distributor set up in 1871 with an eclectic mix of activities, aimed originally at supplying farmers with food, feed and fuel recently announced the expectation of another record year for the Group with trading in the year ending 31st May 2010 ahead of market expectations. May 2010 consensus is for pre-tax profit of £6.7m and earnings per share of 9.79p.
The new financing secured from the Royal Bank of Scotland runs until October 2013, and is a total facility of £51m available at 'similar costs to the previous existing facility.' Along with this net debt has been reduced from the £19.3m at the end of last year, thanks to 'prudent cash management'.
The Group is made up of three divisions. These are:
- Ambient Grocery Distribution (grocery distribution for retail businesses)
- Manufacture and distribution of animal feed (Feed for all types of livestock, with large technical department)
- Fuel distribution (Fuel Oils and lubricant distribution to farmers, fuel stations and domestic clients)
Food distribution is on course to deliver a record result, largely attributed as the result of work done to increase operating efficiency. However, it is also appreciated that the industry has been largely unaffected by the economic climate. Feeds saw a shaky start in the first half, but has improved significantly in the second half, bringing trading inline with expectations for the full year.A cold winter, resulting in increased demand for heating oil has meant that the Fuels division has had outstanding results in the second half, significantly ahead of expectations. Chief Executive, Richard Whiting commented:
"The Group's strong trading performance is a reflection of the underlying strength of all three divisions, and another record set of results are anticipated for the year to 31 May 2010, in our prelims in early August."NWF doesn't bring the excitement/hope of a material oil find in the South Atlantic but, as we have heard said before, 'slow and steady often wins the race'!
