Boughey Distribution owner reports solid trading
NWF Group - owner of grocery specialist Boughey Distribution - has reported trading is in line with expectations, with figures for the half year expected to be ahead of 2018.
The specialist UK distributor of fuel, food and feed said that the recent completion of two acquisitions in its fuel network, Caldo Oils and Ron Darch & Sons, was in line with a strategy to expand its geographical footprint and grow market share.
In a trading update it said these acquisitions are expected to add around £500,000 to fuels’ profitability in the current financial year.
Its food business increased storage and activity levels, which it said was partly due to additional demand before 31 October and that a significant expansion of the division came on the back of a five-year contract with a new food customer.
The update added: “To support this contract and the continued organic growth from a number of other customers, the group has signed a lease to operate an additional, newly constructed 240,000 sq ft warehouse in Crewe conveniently located close to the M6 and to the main Wardle site.
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“This warehouse will increase the capacity of the food division from 100,000 pallets to 137,000 pallets.
“The board anticipates this new site will be fully operational within six months.”
Richard Whiting, CEO of NWF Group, said: “We had a good first half and are trading in line with our expectations.
“During the period, we continued the expansion of NWF in line with our strategy; the two further fuels acquisitions added to the three previously announced, increasing our annualised volumes by almost 30%.
“We are also significantly expanding the food division with a major new contract and warehouse.
“We remain confident in our growth potential and prospects.”
Shares increased by 3% as a result of the update.
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