Chesire-based NWF Group plc, the business that delivers fuel, food and agricultural feeds across the UK, has published a trading update for the year ended May 31, 2022, saying it has delivered a record year, in line with its trading update issued on May 10.
NWF reported “a materially stronger performance than had been expected at the beginning of the financial year.”
In fuels, NWF reported an “outstanding performance” which benefitted from “very significant” short-term volatility in oil prices and periods when the UK market was supply constrained.
“The teams in the group’s 25 depots have focused on maintaining service to existing customers which at times has involved trunking fuel across the country to meet regional shortfalls and adapting pricing strategies to mitigate exposure to the challenging commodity price fluctuations,” said NWF.
In food, NWF reported a “strong” performance across the year with warehouses at an effective operating capacity, and the achievement of significant efficiency improvements.
“The business has also been successful at passing on inflationary costs by working closely with customers and maintaining high service levels,” said NWF.
In feeds, NWF reported a “good recovery in performance” in the second half with the business effectively managing the commodity market price increases and volatility, particularly in the final quarter.
“Positively, increases in milk prices have been implemented to ensure farmers are incentivised to produce milk despite having higher energy, fertiliser, and feed price inputs,” said NWF.
CEO Richard Whiting said: “We have delivered a record result driven by high levels of service provided to customers across the group.
“The outperformance is principally attributed to the Fuels division where there were both fuel availability issues and significant price volatility.
“Our depot-based operating model has again proved robust in providing service to local customers, whilst utilising our national supply agreements to ensure we maintain deliveries to all our customers.
“We entered the new financial year in good shape with strategic progress continuing and a more stable operating environment for the Fuels Division.”