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(Sharecast News) - NWF Group reported a solid start to its financial year in an update on Thursday, with overall trading for the first quarter in line with the board's expectations.
The AIM-traded firm, which was holding its annual general meeting, said that in the fuels division, volumes were slightly lower than the prior year, but margins improved due to effective cost management.
It noted that the price of Brent crude oil fluctuated between $69 and $87 per barrel during the period.
The board said it remained focussed on pursuing acquisition opportunities in the highly-fragmented fuels market as part of its growth strategy.
In the food business, NWF said it completed the fit-out of its new warehouse at Lymedale in June and was now building up storage levels according to the planned investment strategy.
That expansion was expected to enhance the business's operational capacity and support long-term growth.
In the feeds division, volumes increased slightly compared to the prior year, driven by wet weather conditions in the spring and early summer, while margins remained stable.
The milk price had also been steady throughout the period, providing a stable market environment for the business.
"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 as a whole is unchanged," said chair Philip Acton.
"We remain confident in the group's prospects and continue to target development opportunities supported by our strong balance sheet."
NWF Group said it would provide a further trading update in December, following the end of its half-year on 30 November.
At 1415 BST, shares in NWF Group were up 2.76% at 162.88p.
Reporting by Josh White for Sharecast.com.
