NWF Group's trading 'in line with expectations'

Agricultural distribution company NWF Group has announced trading for the half year to 30 November 2012 as being 'in line with the board's expectations' and 'debt levels are lower than anticipated'.

Profit before taxation for the six months ended 30 November 2012 is anticipated to be ahead of the comparative period in the prior year.

Net debt is expected to be significantly lower than at the same point last year reflecting the result of more effective working capital management across the Group.

The Feeds division has traded ahead of expectations with the business effectively managing the significant increases and volatility of commodity prices by focusing on direct business with farmers.

Food has performed slightly behind expectations as the take-on of new customers is slower than planned and the activity level of existing customers has been lower than anticipated in a tough market environment.

The Fuels business has performed better than anticipated in the first half as a result of a return to more normal trading, increased demand for heating oil with the onset of some seasonal winter conditions, a lower cost base and rationalised tanker fleet.