Trading update
The Group is pleased to report that it saw strong overall trading performance in the fourth quarter and as a result, headline profit before tax for the financial year ended 31 May 2021 is now expected to be ahead of market expectations which were established before the pandemic, demonstrating the continued resilience of the Group.
All divisions have remained fully operational throughout the year with safe methods of working and home working implemented where possible. The Group has continued its policy not to furlough any staff or utilise any form of Government support.
Fuels:
· A strong performance ahead of expectations from across the depot network with continued mix improvement from heating oil and gas oil. Heating oil sales have been supported by a cold winter and continued home working during the period.
· The Board continues appraising earnings accretive acquisition opportunities in line with the strategy of consolidating a fragmented UK Fuels market.
Food:
· Business performance improved in the second half in line with expectations following more stable demand patterns and improved business efficiency.
· The new Crewe warehouse remains fully utilised and sets a good benchmark for efficiency.
Feeds:
· Continued to support customers during challenging times by providing nutritional advice and on time deliveries.
· Margins came under pressure during the key winter months with commodity price increases and reduced visibility during the cyber incident.
Net debt at the year-end is now expected to be lower than previous expectations as a result of the stronger trading result, together with ongoing disciplined cash management across the Group and capital expenditure being lower than planned.
Notice of results
NWF will announce its final results for the year ended 31 May 2021 on Tuesday 3 August 2021.
There will be a webcast or conference call option for analysts on the day at 9.30am. Please contact MHP via ailsa.prestige@mhpc.com or 020 3128 8734 if you would like to receive details.
Richard Whiting, Chief Executive of NWF said:
“We've delivered a positive result ahead of expectations set before the pandemic, demonstrating great business resilience, despite the challenges of Covid-19, Brexit uncertainty, a cyber incident and unprecedented commodity price increases. Our teams have worked hard during the year meeting customers' needs whilst staying safe. We have entered the new financial year in good shape with strategic progress continuing.”
Certain information contained in this announcement would have constituted inside information (as defined by Article 7 of Regulation (EU) No 596/2014) (“MAR”) prior to its release as part of this announcement and is disclosed in accordance with the Company's obligations under Article 17 of those Regulations.