NWF Group cuts net debt

Agricultural and distribution business NWF Group said Thursday it has reduced net debt after exceeding trading expectations.

Agricultural and distribution business NWF Group said Thursday it has reduced net debt after exceeding trading expectations.

In a trading announcement for the half-year ending November 30th, the company said debt has been lower than anticipated after the board hit sales targets.

The group is anticipating higher profits in its half-yearly interim results which are due for release on January 29th, 2013.

"Profit before taxation for the six months ended November 30th is anticipated to be ahead of the comparative period in the prior year," the group said in a statement.

"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."

NWF Group said its feeds division has exceeded trading prospects after successfully managing the increases and volatility of commodity prices by focusing on direct business with farmers.

Its fuels business has also performed well following a return to normal trading, increased demand for heating oil for winter, a lower cost base and rationalised tanker fleet.

However business has been slow for its food division with a low intake of new customers and sluggish activity level of existing clients as a result of a competitive market.

NWF Group has market capitalisation of £48.01m. Shares rose 3.57% to 101.50p at 14:00 Thursday.

RD

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Why investors should be “cautiously bullish” for 2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

How the stamp duty holiday is pushing up house prices
Stamp duty

How the stamp duty holiday is pushing up house prices

Stamp duty is an awful tax and should be replaced by something better. But its temporary removal is driving up house prices, says Merryn Somerset Webb…
25 Sep 2020
The electric-car bubble could get an awful lot bigger from here
Renewables

The electric-car bubble could get an awful lot bigger from here

The switch to electric cars is driving a huge investment bubble. But that’s not necessarily a bad thing, says John Stepek. Fortunes will be made and l…
24 Sep 2020
Can Rishi Sunak’s winter plan save the UK economy?
UK Economy

Can Rishi Sunak’s winter plan save the UK economy?

With his Winter Economic Plan, chancellor Rishi Sunak is hoping to support the economy through the dark months ahead as restrictions tighten again. Jo…
25 Sep 2020