REG - NWF Group PLC - AGM Statement and Trading Update

NWFAnnouncement

29/09/2022 07:01

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RNS Number : 0551B  NWF Group PLC  29 September 2022

 

NWF Group plc

 

NWF Group plc: AGM Statement and Trading Update

 

At the Annual General Meeting of NWF Group plc ('NWF' the 'Company' or the
Group), the specialist distributor of fuel, food and feed across the UK, which
is being held later today, Philip Acton, Chair, will make the following
statement:

"I am pleased to give shareholders the following update on trading for the
first quarter of the new financial year, which commenced on 1 June 2022.

Trading in the first quarter, which is typically our quietest period, has been
strong. All three divisions have traded ahead of the Board's expectations and
ahead of the prior year, with the Group remaining cash positive.

Looking at each division in detail:

In Fuels, whilst volumes have been lower year on year, the Company has been
able to manage the continued volatility in the price of oil very effectively
with the result that margins have been higher than seasonal norms. Supply
conditions have become more normalised over the summer period, with full
availability of all fuel types across the country, although the price of Brent
crude oil has continued to fluctuate, in a range between $94 and $124 per
barrel. The Board continues to pursue a number of acquisition opportunities in
Fuels for further expansion of the business, in line with our stated strategy.

The Food division has been trading ahead of expectations with storage capacity
almost fully utilised and benefitting from further improvements in operating
efficiencies. Demand from customers has been stable and predictable over the
period which has supported operational efficiency, whilst storage volumes
reached a peak of 129,000 pallet spaces (capacity 135,000 pallet spaces)
during the period.

In the Feeds division, performance has continued to show good recovery.
Volumes were stable in comparison to the prior year, supported by an increase
in demand in August, following the dry summer. Margins have remained robust
following price increases underpinned by spot commodity prices trending
downwards during the period.

With the seasonally busier winter months to come, which are the most material
to the Group's performance, the Board's outlook for the financial year remains
unchanged at this early stage of the year. We continue to have confidence in
the Group's future prospects and to target development opportunities supported
by our strong balance sheet and banking facilities.

As is its established practice, the Group will provide a further trading
update in December 2022, following the end of its half year on 30 November."

Information for investors, including analyst consensus forecasts, can be found
on the Group's website at www.nwf.co.uk.

 

 Richard Whiting, Chief Executive       Reg Hoare / Catherine Chapman  Mike Bell / Ed Allsopp
 Chris Belsham, Group Finance Director

 NWF Group plc                          MHP Communications             Peel Hunt LLP
                                                                       (Nominated Adviser and broker)
 Tel: 01829 260 260                     Tel: 020 3128 8339             Tel: 020 7418 8900

 

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