NWF Group Plc - Half Year Results

Financial highlights

H1 2017

H1 2016

%

 

Revenue

 

£295.8m

 

£255.9m

+15.6%

 

Headline operating profit*

 

£2.4m

 

£2.2m

+9.1%

 

Headline profit before taxation*

 

£2.2m

 

£2.0m

 

+10.0%

 

Headline diluted EPS*

3.6p

3.3p

+9.1%

 

Interim dividend per share

 

1.0p

 

1.0p

 

-

Net debt

£16.3m

£19.1m

(14.7%)

 

Net debt to EBITDA

1.2x

1.6x

-

 

Statutory results

 

 

 

 

Profit before taxation

 

£1.9m

 

£1.3m

+46.2%

 

Operating profit

 

£2.4m

 

£1.8m

+33.3%

 

Diluted EPS

 

3.1p

 

2.1p

+47.6%

 

 

 

 

* Headline operating profit excludes exceptional items. Headline profit before taxation excludes exceptional items and the net finance cost in respect of the Group's defined benefit pension scheme. Headline diluted EPS also takes into account the taxation effect thereon.

Operational highlights:

·     Revenue growth from increased activity levels and higher commodity prices in Feeds and Fuels

·     Delivery of planned profit improvements in Feeds and Fuels

·     New customer wins in Food ensures Wardle will be fully utilised

·     Board's full year expectations for trading performance and net debt levels unchanged

 

Divisional highlights:

·     Feeds - headline operating profit of £0.4 million (H1 2016: loss of £0.3 million). The planned benefits from the investment at Longtown and Wardle are being delivered with increases in operational efficiency driving profitability.

 

·     Food - headline operating profit of £0.9 million (H1 2016: £1.6 million). Profit in line with our expectations, reflecting lower storage volumes. The focus on business development has been successful with significant new customer wins in the first half year.

 

·     Fuels - headline operating profit of £1.1 million (H1 2016: £0.9 million). Delivered strong volume growth with commercial customers to offset the lower levels of market demand for heating oil over summer/autumn months.

 

Board appointment:

David Downie appointed to the Board as a non-executive director with immediate effect.

 

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

"NWF has delivered profit improvement in line with our expectations in the first half year with each of the divisions performing as planned. The significant increase in profits in Feeds is of particular note, demonstrating the expected return on the capital investment completed in 2017. Current trading is in line with the Board's full year expectations."