Company defies crunch with record profits.

THREE-PRONGED Cheshire distribution business NWF yesterday defied the economic slump by reporting record half-year operating profits.

The firm concentrates on the three fs - fuels, foods (storage and distribution for food suppliers), and feeds (agricultural).

For the six months to November 30, NWF said revenue increased 21.8% to pounds 198.1m.

Operating profit soared 68.2% to pounds 3.7m and pre-tax profit was up 12.5% to pounds 1.8m.

The company did have a fourth division - garden centres - but these were disposed on October for pounds 14.5m.

The distribution division saw a 100% increase in operating profit to pounds 1m, in feeds 16.7% to pounds 1.4m and in fuels 160% to pounds 1.3m, despite the volatility in oil prices.

Chief executive Richard Whiting told LDP Business the sale of the garden centres allowed NWF to reduce its debt and put the business on a sounder footing.

The firm's distribution arm stores foods for companies like Princes Foods, Typhoo Tea and Pataks and distributes them to all the major supermarkets.

"We have benefited because the ambient food market is good.

"We store and distribute basic food staples that people carry on buying even when there's a downturn so we expect that market to remain robust.

He said forecasts for fullyear profits had now been revised upwards from pounds 4.7m to pounds 5m.

CAPTION(S):

Richard Whiting - expects market to remain robust