Trading update
The Group reports that trading for the half year ended 30 November 2016 was lower than the prior year as a result of a weaker first quarter. Trading has been better in recent months and the Board maintains its full year expectations in terms of performance and net debt levels.
· In the Feeds division, trading was impacted by lower market demand for ruminant feed, particularly in the first quarter, and a rapid increase in commodity costs.
· In Food, the business efficiently met increased demand for storage and distribution from customers. Service levels were maintained at 99.7% and the Wardle warehouse remains fully utilised.
· The Fuels division was impacted by warm weather and lower demand for heating oil during the summer and early autumn, although this has been partially offset by a strong performance in November.
· The acquisitions of New Breed, Staffordshire Fuels and Jim Peet made in the prior year have performed as expected and the mill expansion plans are being successfully delivered.