NWF Group plc
Trading update
NWF Group plc ('NWF' or 'the Group'), the specialist distributor of fuel, food and feed across the UK, today announces a trading update for the current year ending 31 May 2022.
As set out in the interim results on 1 February 2022, the Group delivered a very strong performance in the first six months of the year and carried over positive momentum going into the second half.
Since then, overall trading performance has continued to be strong, with demand conditions in the Fuels business accelerating to the extent that we now anticipate full year results will be significantly ahead of the Board's previous expectations. Cash generation remains strong with lower net debt anticipated at year end.
Divisional highlights
In Fuels, the strong reported outperformance in the first half has continued. Amidst significant volatility in the oil price, the business has seen elevated demand in the short term, with customers valuing the high levels of service provided across our depot network.
Food has performed as planned with storage levels having increased quickly as manufacturers and importers respond to the strong demand seen in the first half.
In Feeds with price increases continuing to be implemented, cost inflation has been recovered and the focus remains on developing long term volume growth .
Impact of the conflict in Ukraine
Since the start of the conflict on 24 February the impact to date has been most significant in Fuels, with the price of Brent Crude over $120 per barrel and with very significant volatility leading to elevated levels of demand. To date, there have been no major supply issues and we continue to meet demand across the country.
Feeds commodity prices, including wheat and barley, have increased to unprecedented highs, but with most raw materials now purchased for the winter period this impact will be most keenly felt as we move into May and the summer trading period.
We continue to monitor the situation very closely and our thoughts are with all the people and their families impacted by this crisis.