NWF Group plc: Trading Update

NWF Group plc ('NWF' or 'the Group'), the specialist distributor of fuel, food and feed across the UK, today announces a trading update for the year ended 31 May 2022.

Trading update

The Group is pleased to report it has delivered a record year, in line with its trading update issued on 10 May 2022, and a materially stronger performance than had been expected at the beginning of the financial year. These results demonstrate both the resilience of the Group and its ability to deliver a good financial performance in volatile market conditions. Cash generation has remained strong and the Group was cash positive at the year-end, compared to reporting net debt last year.

Fuels:

Outstanding performance which benefitted from very significant short-term volatility in oil prices and periods when the UK market was supply constrained. The teams in the Group's 25 depots have focused on maintaining service to existing customers which at times has involved trunking fuel across the country to meet regional shortfalls and adapting pricing strategies to mitigate exposure to the challenging commodity price fluctuations.

Food:

A strong performance across the year with warehouses at an effective operating capacity, and the achievement of significant efficiency improvements. The business has also been successful at passing on inflationary costs by working closely with customers and maintaining high service levels.

Feeds:

Good recovery in performance in the second half with the business effectively managing the commodity market price increases and volatility, particularly in the final quarter. Positively, increases in milk prices have been implemented to ensure farmers are incentivised to produce milk despite having higher energy, fertiliser, and feed price inputs.

Richard Whiting, Chief Executive of NWF said:

“We have delivered a record result driven by high levels of service provided to customers across the Group. The outperformance is principally attributed to the Fuels division where there were both fuel availability issues and significant price volatility. Our depot-based operating model has again proved robust in providing service to local customers, whilst utilising our national supply agreements to ensure we maintain deliveries to all our customers. We entered the new financial year in good shape with strategic progress continuing and a more stable operating environment for the Fuels Division.”