LONDON (ShareCast) - (Sharecast News) - NWF Group said in an update on Thursday that trading in its first quarter - typically the company's quietest period - had been "strong".
The AIM-traded firm, which was holding its annual general meeting, said all three of its divisions had traded ahead of expectations and ahead of last year, as it remained cash positive.

Chair Philip Acton said that in fuels, while volumes had been lower year-on-year, the company was able to manage the continued volatility in the price of oil "very effectively" with the result that margins were higher than seasonal norms.

"Supply conditions have become more normalised over the summer period, with full availability of all fuel types across the country, although the price of Brent crude oil has continued to fluctuate, in a range between $94 and $124 per barrel.

"The board continues to pursue a number of acquisition opportunities in fuels for further expansion of the business, in line with our stated strategy."

The food division, meanwhile, had been trading ahead of expectations with storage capacity almost fully utilised and benefitting from further improvements in operating efficiencies.

"Demand from customers has been stable and predictable over the period which has supported operational efficiency, whilst storage volumes reached a peak of 129,000 pallet spaces during the period."

Finally, in the feeds division, performance had continued to show good recovery, Acton said.

"Volumes were stable in comparison to the prior year, supported by an increase in demand in August, following the dry summer. Margins have remained robust following price increases underpinned by spot commodity prices trending downwards during the period.

"With the seasonally busier winter months to come, which are the most material to the group's performance, the board's outlook for the financial year remains unchanged at this early stage of the year.

"We continue to have confidence in the group's future prospects and to target development opportunities supported by our strong balance sheet and banking facilities."

NWF said it would issue a further trading update in December, following the end of its half-year on 30 November.

At 1100 BST, shares in NWF Group were up 1.29% at 236p.

Reporting by Josh White at Sharecast.com.

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