NWF Group has reported a 57.1% annual drop in pre-tax profit to £900,000 in H1, as a result of suppressed market demand for both domestic heating oil and commercial gas oil.

The agricultural and distribution business revealed that in in the six months to 30 November, while its domestic heating oil demand improved during December and January as a result of colder weather, the division recorded an operating loss of £1.6m.

It comes after NWF made two bolt-on acquisitions to its fuels division in line with its regional operating model optimisation announced in July 2025.

Despite this, the company's food and feeds divisions recorded operating profits of £3.3m and £1.3m, marking respective 32% and 62.5% increases.

Furthermore, its revenue dropped by over 4% to £434.6m because of the drop in demand for oil.

Chief executive officer at NWF Group, Chris Belsham, stated: "Market conditions during the first half of the year resulted in a challenging environment for our fuels business, whilst we are seeing the benefits from the investment and growth initiatives carried out in recent years within food and feeds.

"We are now experiencing the increased demand for domestic heating oil, albeit later in the financial year than usual, prompted by the colder weather, and we expect domestic demand levels to normalise through the winter months."

In its outlook, NWF stated that it has continued to perform in line with expectations since the period end, with demand for domestic heating oil has returned to more normal levels.

Its food business continues to bring additional stock from new and existing customers, while volumes in its feeds division have been maintained despite expectations of some reduction in the milk price.

NWF said that with the winter months typically being more material to the group’s performance, the board’s expectations for the full year are unchanged, after being lowered in November. Its headline profit before tax is expected to reach £13.2m.

"We have made good strategic progress across the group in the first half, having deployed capital in a disciplined and considered manner," added Belsham. "The group's financial position is strong and the board remains confident in NWF's growth potential and prospects. Our full year expectations remain unchanged."

Following the publication of its H1 results, shares in NWF dropped by almost 2.5%.

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