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Strong Oil Performance Fuels Growth at NWF
5th May 2009
Specialist distribution business NWF Group plc, whose activities include the supply of fuel and home heating oil, has defied the credit crunch to deliver a strong annual performance ahead of market expectations.
In a trading update, the Cheshire based company confirmed that the group's strong performance in the first half year of its financial year, had continued through the winter months - driven by a record performance at its fuel oil and home heating oil distribution business.
In a trading update, the company said "The fuels division is delivering record levels of performance as a number of key factors combine for exceptional trading results. The strong depot focused management team has performed well during a period of continued oil price falls and volatility. This in conjunction with a very cold winter improved both volumes and margins as the business focused on maintaining class leading service levels, whilst competitors pushed out delivery lead times.
Elsewhere at NWF, the company's food distribution business reported 'strong outbound volumes and good demand for grocery products, whilst the company's animal feeds business reported good results against the backdrop of tougher market conditions.
Commenting on the company's strong performance over the past year, Richard Whiting, NWF's Group Chief Executive Chief Executive, said "NWF has continued to perform at record levels throughout the key winter months and in particular the team in the fuels division has delivered an exceptionally strong result. The strength of our three trading divisions continues to deliver a good platform to support the future development of the Group."
Given prevailing economic conditions, NWF continues to focus on cash management across the group, with further improvements made to the company's cash position and a reduction in net debt being delivered during the year. The company expects that full year results will be significantly ahead of market expectations. The company will publish full year results for the 2008/9 financial year in August.
