NWF Group cuts net debt

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