Cheshire-based NWF Group plc, which delivers fuel, food and agricultural feeds across the UK, said its revenue for the half year ended November 30, 2024, was 3.9% lower at £454.3 million “primarily as a result of the lower oil price in fuels.”
Headline profit before tax was up 5.9% to £3.6 million and NWF approved an unchanged interim dividend per share of 1p.
NWF Group also reported a “conflict of interest investigation in the food business.”
In fuels, revenue fell 9.3% to £312.8 million as a result of the lower oil price offsetting an increase in volumes. Headline operating profit was £1.7 million (H1 2023: £0.7 million).
In food, revenue increased by 11.1% to £43.9 million “reflecting increased capacity with the opening of the Lymedale warehouse.” Headline operating profit was £2.5 million (H1 2023: £2.9 million).
In feeds, revenue increased by 10.2% to £97.6 million “as higher volumes offset lower commodity and therefore selling prices in the period.” Headline operating profit was £0.8 million (H1 2023: £0.4 million).
On the conflict of interest, NWF chair Amanda Burton wrote: “During the period, the group uncovered a conflict of interest in relation to a commercial arrangement, which has since been terminated, for the provision of transport services including drivers.
“The individuals linked to the commercial arrangement are no longer employed by the business. There is also additional complexity as to the payroll (IR35) tax treatment in relation to those services.
“The board appointed an independent accountancy firm to investigate this matter, with the costs of the work to date being reported within exceptional costs incurred in the period.
“The investigation is ongoing and we will update shareholders further in our full year results in August 2025, but at this stage we do not expect this to have a material impact on our headline performance in the year.”
In her outlook, Burton said: “Following the positive start to the financial year, the group has continued to perform as planned since the period end.
“In Fuels, demand has been variable with no major increase in demand for heating oil.
“In Food, the business continues to bring in additional stock from new and existing customers whilst optimising its performance. In Feeds, the improving milk price has continued to support volumes.
“With the winter months ongoing, which are typically more material to the group’s performance, the board’s expectations for the full year are unchanged.
“The group’s financial position is strong and we continue to focus on development opportunities, both organic and through targeted, acquisition opportunities. This underpins our continued confidence in NWF’s growth potential and future prospects.”