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LONDON (Alliance News) - Agricultural and distribution company NWF Group PLC on Tuesday said its full-year results had seen both a positive and negative influence from the falling world oil price, as its margins were protected thanks to lower costs but its revenue fell.
NWF's pretax profit was up by 5.2% in the year to the end of May to GBP8.1 million from GBP7.7 million, despite revenue falling to GBP492.3 million from GBP537.7 million. The company's margins were protected by the lower oil price, which reduced costs in its fuel division but contrastingly meant that its fuel revenue fell.
NWF said revenue was also dragged lower by lower commodities prices in its feeds business, which also saw its divisional underlying operating profit halve thanks to reduced milk prices and falling commodities prices. It does expect an improvement in the second half for the feeds arm, however.
The group's food business performed well in year, however, with good operational efficiency boosting operating profit and further long-term contracts signed with its customers in the period.
NWF said it will pay a final dividend of 4.4 pence per share, up from 4.1 pence a year earlier, meaning its total dividend for the year rises to 5.4 pence from 5.1 pence.
"NWF delivered a solid performance last year. The results demonstrate the resilience and benefits of the diverse NWF business model and the benefits of targeted initiatives delivered in all three of our divisions. The acquisition of New Breed in June 2015 demonstrates our strategic intent to continue the successful development of the group. Progress to date in the current financial year has been in line with the board's expectations," said Chief Executive Richard Whiting.
NWF shares were up 1.0% to 158.60 pence on Tuesday.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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