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(Sharecast News) - NWF Group said on Tuesday that its outlook for the full year remained unchanged after a mixed start to the new financial year, with strength in its feeds division offsetting softer demand in fuels and a restructuring-led recovery in food.
Ahead of its annual general meeting, the AIM-traded specialist distributor said fuel volumes were lower on a like-for-like basis in the first quarter, reflecting weaker market demand for domestic heating oil and commercial fuel, creating a more competitive trading environment.
It added that the national rollout of its regional operating model in fuels had been completed and was expected to deliver benefits as the year progresses.
The food business delivered a significant improvement in performance in line with board expectations after restructuring its cost base and changing its management team in June, while feeds continued the positive momentum seen at the end of the prior year with strong volumes, well-managed margins and stable milk prices supporting customer demand.
Chair Amanda Burton said the group remained confident in its prospects, with a long-term growth strategy focused on targeted acquisitions, growth investment and business improvements, underpinned by a strong balance sheet.
NWF also confirmed it had acquired N Booth and Sons, a 24 million-litre fuel distributor based near Wigan, in July.
The business had been integrated into its North-West region, following the earlier purchases of Northern Energy Oil in March and Pinnocks in May.
Together, the three deals added 79 million litres of annual volume, about 12% of the group's prior-year total, while strengthening its presence in key regions.
The company said it would provide a further trading update in December after the end of its half-year.
At 1421 BST, shares in NWF Group were up 0.92% at 174.6p.
Reporting by Josh White for Sharecast.com.
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