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LONDON (Alliance News) - Specialist agricultural and distribution business NWF Group PLC saw its shares fall Thursday after it said trading in the first quarter of its new financial year has been tough, with its margins hit by falling commodity prices.
The company said trading in the first quarter had been difficult, due to significant falls in commodity price, particularly volatile and lower Brent crude prices which hit its fuels business.
NWF said its food business remained stable in the quarter, but said in its feeds business, while volumes have remained robust, margins have been hit by both lower commodity prices and the announcement of the recent reductions in milk prices across the UK.
"At this stage of the year the board's outlook for the year remains broadly in line with its expectations and we continue to focus on development opportunities, both organic and through targeted acquisitions," said Chairman Mark Hudson in his annual general meeting statement.
Last month, NWF posted a drop in both profits and revenue for its last financial year ended May 31, as warmer UK weather held back demand for its heating oils. It said its profit in the year was held back by lower profits from its feeds business and its fuels division, while its food division, on the other hand, delivered an increase in profits, supported by the signing of new long-term contracts.
NWF shares were trading 4.9% lower Thursday morning at 147.00 pence.
By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty
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