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AIM-listed fuel and food distributor NWF (LON:NWF) saw its shares drop by 2.90% to 191.77p (as of 12:15 BST) despite revenues for the year ended 31st May climbing by 9.9% to £611 million as the company benefited from higher commodity prices. Profits before tax also climbed by 20% to £10.2 million and EPS improved by 40.7% to 15.9p, which has led management to increase the dividend to 6.3p.
The company said that its outlook for the current year was positive and that performance so far had been in line with expectations. A £65 million financing package from RBS, which will be used to fund development, has been renewed.
Chief Executive Richard Whiting commented, “NWF has delivered a record performance in exceptional conditions. The Fuels division has benefited from providing high levels of service to customers across the country through a long, cold winter. Food has won contracts that underpin its future development and we have delivered the planned increase in returns in Feeds as a result of the capital investment in the prior year and effective management of the business against a backdrop of more stable milk prices.
The benefits of the record year have been converted into cash and the lower level of debt is supported by a renewed five year banking facility. We are proposing an increased dividend and continue to see opportunity for further strategic and operational progress. Trading in the current financial year to date has been in line with our expectations.”