NWF Group said in a trading update it had continued to outperform and as a result the board anticipated full year results to be significantly ahead of revised expectations.

The specialist UK distributor of fuel, food and feed said that the increased expectations were led by its fuels business, as a result of “exceptional circumstances” – due to the short-term volatility in oil prices and a supply-constrained UK fuel market.

The update comes just three weeks after its last upgrade to the results for the year ending 31 May 2022.

Akhil Patel, analyst at Shore Capital, said fuels had seen elevated demand in the short term given concerns over prices and availability, but NWF had not experienced any major supply issues, “given circa 50% of the group’s fuel supply is contracted with major oil producers and be sourced across the UK."

“Thus, NWF fared well in terms of significant uncertainty given its fuel supply is contracted and guaranteed whilst also benefiting from increased profit per litre as the group is able to gain the extra margin when sold to its domestic and commercial customers,” he added.