Nwf Regulatory News (NWF)

2 Oct 2008 07:01

Embargoed until 07.01, 2 October 2008

NWF Group plc

Annual General Meeting, 2 October 2008

Trading Update

The Annual General Meeting of NWF Group plc will be held at 10.30 am today at the Swan Hotel, 50 High Street, Tarporley, Cheshire, where the Chairman Mark Hudson, will make the following statement:

'As I promised in my statement in August at the time of our Preliminary results' announcement for 2007/08, I am today giving shareholders an update on trading for the first quarter of the new financial year.

I am pleased to report that at the end of our first quarter the Group is trading in line with its plans and as expected has shown a significant improvement in profitability on the prior year: Distribution has now successfully exited the leased facility at Winsford as planned, filled its capacity at Wardle and Deeside and is experiencing high levels of activity. In addition the management team has been strengthened and the business is focusing on improving operating efficiency and margins. Feeds continues to deliver good performance, carefully managing raw material procurement in volatile market conditions, whilst UK milk volumes remain well below quota. Fuels has continued to deliver planned margins during a period where the price of oil increased to record levels and subsequently fell significantly. The division continues to invest in new tankers which will further improve its operating efficiency.

We are also announcing today that we have completed the sale of our Garden Centre division to Notcutts Ltd, who already own a number of garden centres. The gross consideration for the sale will be £14.5 million.  The sale process was begun earlier this year and first announced at the Group's preliminary results in August. A competitive sale process was run using KPMG's corporate finance team in Manchester. The proceeds of this sale will, as previously announced, be utilised in reducing debt and strengthening the Group's balance sheet.

I will provide a further update on the Group at the time of our Interim Statement in early February.'

For further information please visit www.nwf.co.uk or contact: