Boughey Distribution parent NWF Group has revealed that its pre-tax profit fell by a third, despite a 16% increase in revenue.
Revenue rose to £540.2m for the year-ending 31 May, up from £463.8m 2011. However pre-tax profit dropped to £5.1m, compared to £7.6m in the previous financial year.
Chief executive Richard Whiting says: “NWF has delivered a profit in line with the board’s expectations and has been successful in reducing debt further than expected.”
Fuel division NWF Fuels continues to account for the majority of revenue (2012: £372.3m/ 2011: £314.6m), but food division Boughey Distribution saw revenue fall £2.2m year-on-year, following the loss of a customer in the second half.
“Feeds and Food performed well and in line with our plans,” Whiting says. “Fuel disappointed as a result of challenging market conditions with the combined impact of an extremely mild winter, record fuel prices and a tough economic environment.”
NWF Fuels acquired Swan Petroleum in September 2011.
In the year NWF Group spent £1.1m on a food IT system, £300,000 on fuel tankers and £400,000 on trucks and trailers at Boughey Distribution.
Mark Hudson, chairman, says: “Whilst the overall economic outlook remains uncertain, the markets for the group’s products and services remain resilient and robust.”