NWF Group (LSE:NWF) reported a mixed performance for the six months to 30 November 2025, as weaker trading in its Fuels division weighed on group profitability despite solid results from Food and Feeds. Group revenue declined 4.3% year on year to £434.6m, while headline profit before tax fell sharply to £0.9m, down 75% on the prior period.
The Fuels division was the main drag on performance, with subdued demand and heightened competition across domestic heating oil and commercial gas oil markets driving a £1.6m headline operating loss. Management noted, however, that colder weather since late November has begun to support a recovery in domestic volumes. In contrast, the Food business delivered a 32% increase in headline operating profit to £3.3m, benefiting from higher throughput and the impact of recent cost restructuring initiatives. The Feeds division also recorded improved profitability, with headline operating profit rising to £1.3m, supported by stable milk and raw material prices and incremental volumes from a new moist feed production line.
Net cash reduced to £0.8m during the period following £5.5m of bolt-on acquisitions within the Fuels business. Even so, the group maintained its interim dividend at 1.0p per share and highlighted strong operating cash generation, significant headroom within its banking facilities and an improved pension position. Management reiterated that full-year expectations remain unchanged, with the second half typically being the most important period for earnings.
Overall, the investment outlook reflects a balance between attractive valuation metrics and underlying financial strengths on the one hand, and technical pressures and ongoing challenges within the Fuels division on the other. Operational efficiency and a high dividend yield remain key positives, although weaker technical indicators continue to weigh on near-term sentiment.
More about NWF Group plc
NWF Group plc is a UK-based specialist distributor operating across three core divisions: Fuels, Food and Feeds. The group supplies domestic and commercial fuels, provides ambient grocery consolidation, warehousing and logistics services to food manufacturers and retailers, and produces and distributes animal feeds. NWF Group is focused on building a scalable national platform in ambient grocery logistics while maintaining disciplined operations across its diversified business model.
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