AGM Statement

4 Oct 2007 07:30

NWF Group PLC04 October 2007 For release at 07.30, 4 October 2007 NWF Group plc Annual General Meeting, 4 October 2007 Chairman's Trading Update The Annual General Meeting of NWF Group plc will be held at 10.30 am today atThe Swan Hotel, 50 High Street, Tarporley, Cheshire where the Chairman will makethe following statement: "As I promised in my statement in August at the time of our Preliminary Results'announcement for 2006/07, I am today giving shareholders an update on tradingfor the first quarter of the new financial year. For the Group as a whole, 2007/08 was expected to be a year of further growthbut with its results very much skewed towards the second half, even more so thanin previous years. With the gradual commissioning of the Wardle warehousedevelopment for Distribution, our planned pre-tax profit for the first halfaccounts for only 29% of the full year plan, with only 8% of this relating tothe first quarter. We have been disappointed by the start to our financial year. The very wetweather of June and July has led to lower sales figures in our Garden Centresand normal cattle feeding patterns for our Feeds business have been affected byhigh commodity prices. Our Distribution and Fuels' divisions have also seen slowinitial starts to their years. Our confidence in the future remains high, although earnings growth is runningbehind expectation so far this year. The full year should still, however, showgrowth on 2006/07 with our longer-term ambitions undiminished. The acquisitionof new customers for Distribution is proceeding at a better than expected pace,which we anticipate will benefit the second half-year. Price increases have beenapplied in Feeds to recover the currently exceptionally high rises in rawmaterial costs. Fuels has an enviable track record of profitability which, givena more normal series of winter temperatures than experienced last year, isexpected to progress again. Garden Centres has a strengthened management team,improved sales in August and September in line with management's expectationsand the twin peak periods of Christmas and next Spring to look forward to. I will provide a further update at the time of our Interim Statement in earlyFebruary". Mark HudsonChairman For further information please visit www.nwf.co.uk or contact: Graham Scott John West / Clemmie CarrNWF Group plc Tavistock CommunicationsTel: 01829 260 260 Tel: 020 7920 3150 Mark Taylor / Freddy CrossleyCharles Stanley SecuritiesTel: 020 7149 6000 This information is provided by RNS The company news service from the London Stock Exchange