NWF FY performance seen in line with expectations

13th Jun 2024 09:38

(Sharecast News) - Agricultural and distribution business NWF that its full-year performance was expected to be in line with market expectations, reflecting a normalisation in the fuels and feeds markets and a strong contribution from its food division.

NWF said fuels volumes in FY24 remained ahead of the prior year, in part benefitting from increased commercial customer orders as mild weather across the winter resulted in low demand for domestic heating oil, while its food business traded strongly in FY24 and ahead of the prior year as storage volumes reached a peak of just over 146,000 pallet spaces.

The AIM-listed group noted that volumes in its feeds division were behind the prior year as ideal grass-growing conditions across the summer and autumn provided farmers with significant forage for the winter. However, this was partially mitigated by wet winter and spring weather which extended the usual winter season demand into April.

Net cash at the year-end was £10.0m, in line with market expectations, and reflecting its trading performance, effective working capital management and investment in its new warehouse at Lymedale.

Chief executive Chris Belsham said: "NWF has delivered a solid financial performance as it experienced more challenging conditions than in recent years, with market pricing normalising for Fuels and Feeds, the impact of which has continued into the new financial year.

"We continue to focus on our long-term growth strategy of development through targeted acquisitions, organic investment including significant investment in new fleet and improvement initiatives, supported by our strong financial position and confidence in NWF's potential and prospects."

As of 1300 BST, NWF shares were up 4.05% at 199.78p.

Reporting by Iain Gilbert at Sharecast.com