Cheshire distribution group NWF Group saw pre-tax profit fall 27% to £4.2m in the year to 31 May 2008 as it ploughed money into expanding its warehouse capacity. NWF, which operates in the distribution, feeds and fuel sectors, also saw operating profit drop 11% to £5.8m.
Richard Whiting, chief executive for the firm, cites major investments as the reason for the decline in profit. Three warehouses were purchased for a total of £19m and 121 extra people
were employed. In addition, 60 MAN trucks were bought to bolster the 105-strong fleet of NWF's distribution company Boughey.
To reduce costs, the group has decided to vacate the leased Winsford warehouse and is selling its garden centre division.Whiting says: "This will reduce the debt of the group, reduce interest costs and help profits to increase."
NWF group turnover was up 21% to £361.2m in 2008. Whiting says the second half of the year was better than the first and predicts Boughey could make a profit of £2m in 2009. "We've had a good year of transition and made decisions for our distribution sectors," he says. "These are good platforms for future developments."
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