Falling oil prices have hit interim revenues at Cheshire-headquartered NWF Group, the specialist agricultural and distribution business, although chairman Mark Hudson said its overall performance was "solid".
In the six months to 30 November 2014, the Nantwich company recorded a 4.6 per cent drop in sales to £247.1m, compared with £259.1m a year earlier. Pre-tax profit also reduced from £2.9m to £2.1m.
Its fuels division suffered the largest revenues drop – down 6.9 per cent to £160.3m – as a consequence of the fall in oil prices. However, operating profit nudged up from £1.1m to £1.2m as the division reported increased sales of gas oil and premium products.
NWF said "significantly lower commodity prices" contributed to a 0.6 per cent sales fall to £68m in its feeds division, while its food operations posted a 1.6 per cent rise to £18.8m.
"NWF has delivered a solid result against a record performance for the comparative period in the prior year," said Hudson.
"We have performed as planned since the period end. In Feeds our customers are facing further falls in milk prices and we are working to optimise diets to help mitigate the tough conditions for dairy farmers."
Hudson added its food division has "navigated the volatile Christmas period" and although oil prices continue to fall, this has not affected profits in its fuels arm.
"Overall the group is trading in line with the expectations of the board and I look forward to updating shareholders later this year," he said.
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