NWF Group plc: AGM Statement and Trading Update
At the Annual General Meeting of NWF Group plc ('NWF' or the Group), the specialist distributor of fuel, food and feed across the UK , which is being held later today, Philip Acton, Chair, will make the following statement:
“I am pleased to give shareholders the following update on trading for the first quarter of the new financial year that commenced on 1 June 2021.
Overall trading in the first quarter, which is typically our quietest period, has been consistent with the Board's expectations and ahead of the prior year, with a reduction in net debt compared to the same period last year.
Looking at each division in detail: Fuels has managed the expected increased level of commercial demand over the prior year and traded in line with expectations over the quiet summer period. The price of Brent crude has fluctuated in a range between $66 and $78 per barrel. The Board continues to look at acquisition opportunities in Fuels for further expansion of the business, in line with our stated strategy.
Food has been trading ahead of expectations with robust demand across all sectors; storage has been fully utilised and operating efficiency has continued to improve. Our successful strategy to recruit HGV drivers and reduce reliance on agency drivers has enabled the Group to maintain driver numbers at a satisfactory level; driver pay increases have been passed on to customers.
In the Feeds division, volumes are lower given lower levels of merchant business and good forage conditions, resulting in a weaker performance against expectations over the quieter summer period. Looking ahead, the strong milk price is supportive of demand from dairy farmers, the most significant customer segment. Commodity prices have remained elevated in the year to date.
We have noted recent press comment reflecting concerns around the availability of drivers, including the current issues with retail petrol availability. As a business with proven capability to manage its supply chain and delivery infrastructure effectively, we are pleased to report that we have not been negatively impacted by these issues and remain focused on supporting our domestic and commercial customers.
The Board's outlook for the financial year remains in line with its previous expectations. We continue to have confidence in the Group's future prospects and to target development opportunities supported by our strong balance sheet and banking facilities.
As is its established practice, the Group will provide a further trading update in December 2021, following the end of its half year on 30 November .”