NWF shares slide on persistent weakness in fuels business
By Josh White
Date: Friday 21 Nov 2025
(Sharecast News) - NWF Group shares were sliding on Friday, after it said trading in the first half amended 30 November was mixed, with strong performances in its food and feeds divisions outweighed by a weaker-than-expected period for fuels.
The AIM-traded specialist distributor warned that full-year results would be "significantly below" current market expectations as unusually warm autumn weather and lower commercial fuel demand hit volumes and margins.
It said domestic heating oil demand, already flagged as soft in its September annual general meeting statement, had continued to weaken.
Data from the Department for Energy Security and Net Zero showed heating-oil volumes in the three months to August were 25% below the prior year, and NWF said that trend persisted through autumn as temperatures remained above seasonal norms.
While winter demand was expected to normalise, the company said it would not offset the shortfall in the first half.
Commercial diesel and gas-oil demand also fell, with DESNZ data showing gas-oil volumes down nearly 30% over the same three-month period.
NWF said the suppressed demand environment led to heightened competition and pricing pressure, weighing on margins in its fuels division.
The recent national rollout of a new regional operating model, completed in July, also created short-term challenges as the business adjusted to the change, although the group said it expected operational and commercial benefits to emerge as the year progresses.
By contrast, the food division performed ahead of the prior year after securing new contracted business and benefiting from a cost-base restructuring completed in June.
Management said it was continuing to pursue efficiency gains and a strategy aimed at building a national network of scale.
The deeds business maintained the positive momentum referenced in September, with volumes steady, margins healthy and stable milk prices encouraging farmers to feed livestock to maximise yields as the business enters its busier seasonal period.
NWF said fuels should see improved trading in the second half as colder weather supported heating-oil demand, but the board did not expect that to be enough to compensate for the weaker first half.
It added that the medium-term outlook remained supportive, noting the government's 29 October confirmation that it would not proceed with previously-proposed restrictions on fossil-fuel heating installations in off-grid properties.
Despite the short-term setback, NWF said its financial position remained strong and the board is confident in the group's medium-term prospects, underpinned by a strategy focused on targeted acquisitions, growth investment and operational improvement.
The company planned to report interim results in early February.
At 1102 GMT, shares in NWF Group were down 21.07% at 125.5p.
Reporting by Josh White for Sharecast.com.
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