Cheshire distribution firm NWF grows profits despite tough market conditions

Agricultural distribution company NWF Group, based in Cheshire, managed to increase its pre-tax profits in the year ending May 31 despite difficult market conditions and a drop in revenue.

The Nantwitch firm’s profit before taxation grew to £8.1m from £7.7m at the same point in 2014, an increase of 5.2% and the second highest profit reported in the company’s history.

NWF’s chief executive, Richard Whiting, said: “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 division (Feeds, Food and Fuel).”

The company’s Feeds division, which works with more than 4,300 farmers across the UK, experienced a difficult year in 2015, as UK dairy farmers were hit with milk price reductions that led to strain in the feed supply market.

Underlying profits in the segment dropped to £1.8m from £3.3m in 2014 while revenue fell to £144.9m from £160.7m, despite the fact that volume rose from 543k tonnes to 567k tonnes, an increase of 4.4%.

NWF’s Foods division, meanwhile, saw its operating profit grow by 25%, from £2m at the end of May 2014 to £2.5m this year, an increase that the company has put down to improved efficiency in its operations.

Elsewhere, the firm’s Fuels division performed better than expectations due to a fall in oil prices, milder winter conditions and a renewed focus by NWF on selling premium products. In the 12-month period, NWF’s Fuels arm saw operating profits surge by 34%, from £3.2m in 2014 to £4.3m.

Chief executive Richard Whiting continued: “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.”