Member Article

NWF hit by rising operating costs

Revenues at agricultural and distribution outfit NWF Group have increased, but operating costs.

The Chesire headquartered firm have reported a £77m rise in revenues on last year, with a fall in profit before taxation of £2.1m.

Warm weather, record oil prices and a challenging economic backdrop for customers were blamed for the hit.

Last year NWF purchased Swan Petroleum, and given this debts at the Group were recorded as £15.5m at the end of May, compared with £11.3m in 2011.

Group operating profit fell from £9.3m to £6.3m and basic earnings per share were down by a almost a third, to 8.1p; down from 11.5p in 2011.

Mark Hudson, Chairman, said: “NWF has delivered results in line with expectations in spite of challenging conditions, particularly in the Fuels market.”

Richard Whiting, Chief Executive, added: “NWF has delivered a profit in line with the Board’s expectations
and has been successful in reducing debt further than had been expected. The Group has continued to
demonstrate its strategic intent with the successful acquisition and integration of the Swan Petroleum business.

“Feeds and Food performed well and in line with our plans. Fuels disappointed as a result of challenging market conditions with the combined impact of an extremely mild winter, record fuel prices and a tough economic environment.”

This was posted in Bdaily's Members' News section by Tom Keighley .