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 1 June 2020, our quietest trading period.
Overall trading in the first quarter has been consistent with the Board's expectations, with net debt reflecting the normal seasonal fluctuations.
Looking at each division in detail: Fuels has traded in line with expectations, with effective management of lower levels of commercial demand than in the prior year, reflecting the reduced economic activity across the UK and acquisitions performing as planned. The Board continues to look at acquisition opportunities for further expansion of the business in line with our strategy.
Food has been trading behind prior year as stock is repositioned to fill the new Crewe warehouse. There has also been significant demand volatility in the short term with increased orders from supermarkets and lower levels from the food service sector. We are anticipating continued volatility of demand in the coming months as a result of the ongoing Covid-19 and Brexit uncertainty.
In the Feeds division, the business has performed as planned with stability in the dairy market and relatively little change in commodity prices in the period.
The Board's outlook for the financial year remains in line with its previous expectations and we continue to focus on ensuring we provide high service levels to all our customers whilst keeping our people safe and secure. We are also well prepared for future impacts of Covid-19 and Brexit, as the fundamentals of our markets are unchanged.
Overall, the Board continues to have confidence in the Group's future prospects and we continue 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, following the end of its half year on 30 November .”