NWF Group Plc – Final Results 2021

NWF Group plc 

NWF Group plc: Final results for the year ended 31 May 2021

“Another strong set of results, ahead of expectations set before the pandemic, demonstrating continued performance delivery and resilience.”

NWF Group plc ('NWF' or 'the Group'), the specialist distributor of fuel, food and feed across the UK, today announces its audited final results for the year ended 31 May 2021.

1  Headline operating profit excludes exceptional items (see note 5) and amortisation of acquired intangibles. Headline profit before taxation excludes exceptional items, amortisation of acquired intangibles and the net finance cost in respect of the Group's defined benefit pension scheme. The calculation of headline earnings excludes the exceptional impact of remeasuring deferred tax balances. Headline EPS for the year ended 31 May 2020 has been re-presented on a like-for-like basis (see note 8). Diluted headline earnings per share also take into account the taxation effect thereon.

2  Net debt to headline EBITDA is calculated based on net debt excluding IFRS 16 lease liabilities. The headline EBITDA calculation excludes the impact of IFRS 16 depreciation.

Highlights:

• Performance ahead of the market expectations established pre-pandemic. Second highest profit performance on record for the Group; prior year benefitted from a significant fall in the oil price.

• Outperformance in Fuels with strong heating oil demand supported by a cold winter and an increase in home working during the pandemic.

• Strong second half recovery in Food delivering on the anticipated benefits of the new Crewe warehouse, which has been fully utilised.

• Feeds performance impacted by the significant increase in feed commodity prices and reduced management information as a result of the cyber incident.

• Continued effective response to Covid-19:

• All divisions have remained open and operational, providing essential services.

• Continually updated risk assessments across the Group, enabling safe working and meeting customer needs.

• No Government support utilised and no staff furloughed.

• Balance sheet remains in a strong position with net debt to headline EBITDA at 0.3x, highlighting the resilience of the Group and providing significant capacity to support investment driven growth.

• For the tenth successive year, it is proposed to increase the total dividend, by 4.3% to 7.2p per share, reflecting the Board's confidence in prospects of the business.

• Performance to date in the current financial year has been in line with the Board's expectations.

Divisional highlights:

Fuels – headline operating profit of £9.3 million (2020: £11.0 million). Strong performance, ahead of expectations and against the prior year which benefitted from significant oil price volatility. Continued effective commercial and operational execution across the depot network, with strong gas and heating oil sales driving further mix improvement.

Food – headline operating profit of £1.9 million (2020: £1.4 million). Good second half recovery after volatile trading conditions in H1 as a result of Brexit and pandemic buying patterns. The new Crewe warehouse has been fully utilised and has delivered business benefits in line with expectations. Efficiency improvements have delivered the sustained profit improvement.

Feeds – headline operating profit of £1.7 million (2020: £1.9 million). Continued to support farming customers across the country with nutritional advice and on time deliveries. Performance was impacted by unprecedented commodity price increases during key winter months, exacerbated by a lack of visibility as a result of the cyber incident.

Richard Whiting, Chief Executive, NWF Group plc, commented:

“NWF has delivered another strong set of results, ahead of expectations set before the pandemic, demonstrating continued performance, delivery and resilience. Our teams have worked hard during the year meeting customers' needs whilst staying safe. I'm proud of how we have responded to the challenges of Covid-19, Brexit and a cyber incident and exited the year strongly, with significant financial capacity and a clear growth strategy.

There is a significant opportunity for growth backed by strong cash flows and flexible banking facilities alongside a strong asset base. We will therefore continue to consider acquisition opportunities, building on our successful track record of acquiring and integrating businesses, as well as investment in organic development.

Performance to date in the current financial year has been in line with the Board's expectations. Overall, the Board continues to remain confident about the Group's future prospects.”