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.