“I am pleased to give shareholders the following update on trading for the first quarter of the new financial year, our quietest trading period.
Trading has been in line with the first quarter of the prior year and the Board's expectations, with net debt reflecting the normal seasonal fluctuations.
Looking at each division in detail: Fuels has seen some impact from reduced market demand for heating oil as a result of the warm summer and increased competitive pressure on road diesel and gas oil. The price of Brent crude has moved between $69 and $79 per barrel during the period.
Food has been trading in line with our expectations, working with the new customers won in the last 12 months and improving both warehouse and distribution operations. Whilst storage levels have been a little higher than expected, and the Wardle facility is full, outloads have been a little lower as a result of warmer weather and lower demand for ambient groceries.
In the Feeds division, the business benefited from increased demand for Feed as farming customers across the country were impacted by a lack of forage during the very dry summer which led to increased feed usage. The division has effectively managed further increases in commodity prices, now at a five year high.
The Board's outlook for the financial year remains in line with its expectations and we continue to focus on development opportunities, both organic and through targeted acquisitions, supported by our strong balance sheet and banking facilities.
As is its established practice, the Group will provide a further trading update in December, following the end of the half year on 30 November.”