Terrible summer will not be a dampener on growth

Aug 15 2007 by Alistair Houghton, Liverpool Daily Post

CHESHIRE’S NWF Group said it had taken a hit from this year’s dismal weather but was still set for another year of growth.

The group said sales at its garden centre business had suffered in summer as heavy rain kept customers away.

But NWF, which yesterday unveiled a seven per cent rise in annual pre-tax profits to £6.4m, said its newly-expanded distribution centre in Wardle, Cheshire, would drive growth in the year to come.

Outgoing chief executive Graham Scott said the weather had hit what was going set be a strong year for the company’s six garden centres, but said trade was now recovering.

He said: “At Easter garden centre sales were 38% up, like on like and year on year.

“At April we were still 15% up and we thought this was going to be the spring of springs.

“But in May we were 10 per cent down, in June 18 per cent down and in July 26 per cent down. Then the weather got better in August, and so far this month we’re 33% up.”

Mr Scott said the weather also caused an ‘astronomical’ rise in the cost of wheat from around £90 a ton to as much as £145 a ton, meaning NWF’s feed business will have to absorb much higher costs.

In the year ending May 31, the group saw turnover rise 9% to £320m, with three of its four businesses having record years.

Distribution saw turnover fall 1% to £27m. NWF lost a major customer when HP Sauce was taken over by Heinz and took distribution in-house, but has since won a major contract with Typhoo.

The company is investing millions in three new warehouses at Wardle in a move that will create 250 new jobs.

Mr Scott said: “We’re very confident we’ll hit the target of filling them all by the end of May.”

NWF’s fuels division saw a record year despite high fuel prices and a mild winter hitting heating oil sales, with operating profit rising 11% to £3.1m.

Feeds saw turnover rise 13 per cent to a record £81.5m, while operating profits in the garden centre division rose 130% to £700,000.

Mr Scott retires in October after 12 years at the helm of NWF. He will be succeeded by Richard Whiting.

When Mr Scott took the helm NWF had a market value of £10m but is now worth about £100m.

alistairhoughton@dailypost.co.uk