Specialist agricultural and distribution business NWF Group has revealed a decline in full-year profits, but maintains its results are “strong”.
Operating profit for the year ended 31 May 2019 was £10.2m, down 3.8 per cent from £10.6m the year previous, while profit before taxation dipped by 4.9 per cent to £9.7m, down from £10.2m.
The group reported a revenue increase to £671.3m, up 9.9 per cent from £611m the previous year.
The company, based in Nantwich, Cheshire, said its results were “ahead of original market expectations”, but behind on its record year in 2018.
Its fuel division, which saw profits drop from £6.9m in 2018 to £5.6 m in 2019, benefited from extreme winter conditions the previous year, the group said.
Richard Whiting, NWF Group plc CEO, said the company was “continuing to develop in line with our strategy”.
He said: “The fuels division has performed well in spite of a mild winter and has completed three acquisitions adding 20 per cent to its volumes.
“Food has outperformed management’s expectations with new customers and employees working effectively in a business which has been at capacity throughout the year.
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“Feeds has delivered a stable result in spite of variable market conditions. We are proposing an increased dividend and continue to see opportunity for further strategic and operational progress.”
The group saw revenue grow in all three divisions, which it said was a result of increased activity and higher commodity prices.
Revenue in its fuel division increased by 10.6 per cent to £443m, up from £400.7m in 2019, which it attributed to higher oil prices and increased volumes.
Revenue in its food division increased by 18.6 per cent to £47.9m, up from £40.4m in 2018.
Revenue in its feed division increased by 6.2 per cent to £180.4m, up from £169.9m in 2018, which it said was “broadly” as a result of increased feed prices.
Mr Whiting added: “Trading in the current financial year to date has been in line with our expectations.”