Feeds profits jump as NWF reports record year

Agricultural and distribution group NWF hailed another record year, as strong growth in the Feeds business helped the group to beat profit expectations.Pre-tax profit was a record £7.6m in the 12 months ended 31 May, up 7% from the £7.1m recorded the year before and ahead of forecasts of £7.3m (Peel Hunt). Earnings per share rose from 10.4p to 11.5p.Meanwhile, revenue climbed 22.1% from £379.8m to £463.8m."I am pleased to report another record year in the continuing development of the group. We have delivered an excellent result demonstrating the resilience of the group during a period of significant volatility in key commodity markets," said chairman Mark Hudson. The Feeds division, which supplies feed to one in seven dairy cows in Britain, saw operating profits almost double from £2.1m to £4m, despite experiencing "unprecedented increases in many key commodities."The unit was able to implement 11 price increases whilst increasing compound sales by 4.7% in the year. Volumes rose 1.8% to 462,000 tonnes.The Food division had a more difficult year, with "significantly more volatility in the demand pattern for our customers' ambient grocery products."The full-year dividend increased by 4.7% from 4.3p to 4.5p.Shares edged 0.38% higher to 131.50p at 13.33pm.BC