“A solid financial performance, in line with market expectations despite more challenging conditions for Fuels and Feeds relative to recent years. Focus on growth, with investment in the new Lymedale warehouse to meet growing customer demand in our Food business supporting our M&A strategy in Fuels.”
NWF Group plc (‘NWF’, the ‘Company’ or the ‘Group’), the specialist distributor operating in UK markets, today announces its audited final results for the year ended 31 May 2024.
| 2024 | 2023 | % | |
| Financial highlights | |||
| Revenue | £950.6m | £1,053.9m | -9.8% |
| Headline operating profit1 | £14.2m | £21.0m | -32.4% |
| Headline profit before taxation1 | £12.5m | £19.6m | -36.2% |
| Diluted headline earnings per share1 | 19.2p | 31.3p | -38.7% |
| Total dividend per share | 8.1p | 7.8p | +3.8% |
| Headline EBITDA1 | £19.4m | £25.8m | -24.8% |
| Net cash (excluding IFRS 16 lease liabilities) | £10.0m | £16.3m | -38.7% |
| Statutory results | |||
| Operating profit | £14.3m | £20.6m | -30.6% |
| Profit before taxation | £12.2m | £18.9m | -35.4% |
| Diluted earnings per share | 18.4p | 30.1p | -38.9% |
| Net debt (including IFRS 16 lease liabilities) | £36.3m | £13.5m | +168.9% |
1 Headline operating profit and EBITDA 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 earnings per share also takes into account the taxation effect thereon.
Highlights
• Solid results for the Group in line with the expected normalisation of pricing in the Fuels and Feeds markets, reflecting strong operational and commercial execution.
• In Fuels, low demand for heating oil resulting from the mild winter mitigated through increased commercial volume and management of the cost base.
• Strong performance in Food, with increased storage levels and throughput supporting the investment in the new 52,000 pallet space warehouse at Lymedale, representing a 39% increase in operating capacity to support continued customer demand.
• Effective management of gross margins and operational costs in Feeds as the milk price reduced from the record high of the previous financial year.
• Strong balance sheet, with a healthy cash balance providing significant flexibility to support growth initiatives.
• Proposed increase in the total dividend of 3.8% to 8.1p per share, representing the 13th consecutive year of increases and reflecting the Board’s confidence in the prospects of the Group.
• Performance to date in the current financial year has been consistent with the Board’s expectations.
Chair succession
· Philip Action will be standing down as Chair at the Annual General Meeting on 26 September 2024 and, as announced on 18 July 2024, will be replaced by Amanda Burton who joined the Board in July 2024.
Business highlights
Fuels – headline operating profit of £7.9 million (2023: £12.9 million). Expected normalisation of market pricing and therefore margins from the abnormally elevated level experienced in the prior year. Stable supply conditions and oil price experienced throughout the year. The mild winter resulted in low demand for heating oil with the business focusing on commercial volume growth. Active management of the cost base through optimisation of the sales team and tanker fleet as the business looks towards its next renewal programme.
Food – headline operating profit of £3.7 million (2023: £4.2 million) including the absorption of the ramp-up costs of £1.7 million of the new warehouse at Lymedale. Strong performance with an increase in storage levels and pallet throughput as customer demand continued to grow. The fit-out of Lymedale has progressed in line with the business plan with the site now partially operational, and expected to be operating at optimal capacity by early autumn.
Feeds – headline operating profit of £2.6 million (2023: £3.9 million). Weaker milk prices and reduced volatility in raw material prices compared to the prior year resulted in the expected normalisation of margins. Against this backdrop, the business has delivered effective management of both gross margin and operational costs.
Chris Belsham, Chief Executive Officer, NWF Group plc, commented:
“We have delivered a solid set of results in line with market expectations, having managed through more challenging conditions than the prior year following the normalisation of the Fuels and Feeds markets, alongside a strong contribution from the Food business.
“We have also delivered on our growth strategy, with one Fuels acquisition, significant investment in organic and improvement initiatives, and a substantial expansion of the Food business. We see further development opportunities in the current year supported by our strong financial position.
“Performance to date in the current financial year has been consistent with the Board’s expectations, and we remain confident about the Group’s future prospects.”