NWF Group Plc – Final results for the year ended 31 May 2017

Operational highlights:
 

·     Revenue growth in all three divisions – reflecting acquisition contribution, higher activity levels and increased commodity prices in Feeds and Fuels

·      Profit improvement – benefit of diversified operations and strong performances by Food and Fuels

·      Record headline earnings per share

·      Investment in strategic development:

o  £9.4 million capital expenditure, including £5.2 million invested in feed mill developments in the North and Cheshire  

o  funded by strong cash generation and increased net debt

o  significant headroom for investment with net debt to EBITDA ratio of 1.0x

·      Increased dividend – reflecting Board's confidence in the business

Divisional highlights:

·  Feeds – headline operating profit of £1.5 million (2016: £2.1 million). Good second half recovery, having been impacted by margin pressure due to increased commodity costs, particularly through the winter months. Volumes were robust and the mill developments in the North and Cheshire, completed during the year, have strengthened the operating platform.

·  Food – headline operating profit of £3.0 million (2016: £2.7 million). A strong result built on efficiently delivering increased activity levels with the business operating at capacity throughout the year.

·  Fuels – headline operating profit of £4.5 million (2016: £3.9 million). Strong volume growth across the depot network and the new depots in the South East exceeded expectations in their first full year.

Outlook

Performance to date in the current financial year has been in line with the Board's expectations. We expect to benefit from a full year of efficiencies at our new expanded Feeds operational base. Overall, the Board therefore remains confident about the Group's future prospects.