NWF, fuel and feeds firm, reports strong trading

Shares of Chesire-based NWF Group plc, the business that delivers fuel, food and agricultural feeds across the UK, rose about 5% after it published a trading update for the year ended May 31, 2023, together with details of its renewed banking facilities.

As set out in the trading update of 9 March 2023, the group delivered strong performances from all businesses in the first half,” said NWF Group.

“Pleasingly, this positive momentum has been sustained through the second half and consequently, FY23 headline profit before tax is now anticipated to be ahead of the current market expectation and in excess of £19.0 million.”

A company-compiled consensus recently forecast a headline profit before tax of £17.5 million.

In fuels, NWF said volumes recovered in the second half  — and that it continues “appraising earnings accretive acquisition opportunities in line with NWF’s strategy of consolidating a fragmented UK Fuels market.”

In food, NWF said demand has continued to be robust “with storage close to capacity and increased outloads supported by improved operating efficiency.”

In feeds, the group reported “solid demand for ruminant feed and ancillary products across the year supported by a strong milk price with the business effectively managing commodity cost volatility and inflationary cost increases.”

The group said it has completed the renewal of its banking facilities with NatWest Group for a three year term on competitive rates, with an option to extend by two years.

“The facilities of £61 million comprise an invoice discounting facility of £50 million, a revolving credit facility of £10 million and an overdraft of £1 million, with a further £20 million accordion available to support the development strategy of the group,” said the firm.

NWF CEO Richard Whiting said: “We have delivered a very strong result for the group and it’s great to report that all three divisions have performed ahead of expectations in spite of the inflationary and cost of living challenges.

“The group is well positioned with a net cash position and new banking facilities to further develop and grow.”