NWF Group plc: Final results for the year ended 31 May 2019

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 2019.

* Headline operating profit excludes exceptional items 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. Diluted headline EPS also takes into account the taxation effect thereon.

Operational highlights:

·      Strong results – ahead of original market expectations but behind the record prior year

·      Revenue growth in all three divisions – a result of increased activity and higher commodity prices

·      Very strong profit improvement in Food – improved operational effectiveness with new customers

·      Balance sheet remains strong with net debt at 0.7x EBITDA

·      Delivery of strategy with three Fuels acquisitions increasing our penetration and geographic reach

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

Fuels acquisitions:

·      Delivery of strategy with three Fuels acquisitions increasing our penetration, scale and geographic reach:

o  Midland Fuel Oil (December 2018) and Consols Oils (April 2019) previously announced adding 37 million litres per annum combined

o  Ribble Fuel Oils announced today – a 75 million litre business trading across four depot locations in the North West of England

·      Together the three acquisitions add c. 20% to the Group's annualised fuel volumes 

Divisional highlights:

·      Fuels – headline operating profit of £5.6 million (2018: £6.9 million). Solid results from across the depot network benefiting from a volatile oil price and including two acquisitions within the financial year. Prior year benefited from extreme winter conditions.

·      Food – headline operating profit of £1.8 million (2018: £0.7 million). Very strong performance with improved operational effectiveness managing new customers won in the last 18 months and supporting requirements for customers who stored additional products as a result of Brexit preparations.

·      Feeds – headline operating profit of £2.8 million (2018: £3.0 million). Results stable with increased summer demand offset by weaker winter ruminant feed demand. Overall volumes were stable, with the business managing volatile commodity prices effectively.

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

“NWF has delivered a result ahead of original market expectations and the business is continuing to develop in line with our strategy. The Fuels division has performed well in spite of a mild winter and has completed three acquisitions adding 20% to its volumes. Food has outperformed management's expectations with new customers and employees working effectively in a business which has been at capacity throughout the year. Feeds has delivered a stable result in spite of variable market conditions. We are proposing an increased dividend and continue to see opportunity for further strategic and operational progress. Trading in the current financial year to date has been in line with our expectations.“