NWF Group PLC Final Results Announcement

NWF Group plc: Final results for the year ended 31 May 2022

“A record set of results, significantly ahead of market expectations at the start of the financial year, demonstrating the capability of the business to optimise performance and the resilient nature of our markets.”

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 2022 

1  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 earnings per share also takes into account the taxation effect thereon.

Highlights:

• Record results for the Group, reflecting very strong operational and commercial execution in a challenging environment.

• Significant outperformance in Fuels as a result of volatility in oil prices in our final quarter, together with short-term benefits arising from periods when the UK market was supply constrained.

• Solid performance in Food across the year with warehouses at an effective operating capacity, high service levels and an improvement in operating efficiency as planned.

• Strong second half performance in Feeds, implementing price increases in response to unprecedented inflation in feed commodities and other key inputs more than offsetting lower volumes.

• The balance sheet remains in a robust position with the Group cash positive at the year-end for the first time, highlighting the resilience of the Group and providing significant capacity to support investment driven growth.

• Continued increase in shareholder returns; proposed increase in the total dividend of 4.2% to 7.5p per share, reflecting the strong performance and the Board's confidence in the prospects of the business.

• Performance to date in the current financial year has been in line with the Board's expectations.

Divisional highlights:

Fuels – headline operating profit of £17.2 million (2021: £9.3 million). Strong performance across the year with improved returns from a focus on customer service across our 25 depots, with significant one-off gains from providing service to customers when market pricing and availability was challenging in our final quarter.

Food – headline operating profit of £2.8 million (2021: £1.9 million). Consistent improvement in performance across the year. Warehouses were at an effective operating capacity and delivering high levels of customer service, with anticipated improvements in operating efficiency delivered ahead of plan.

Feeds – headline operating profit of £1.8 million (2021: £1.7 million). A strong recovery in the second half, following a disappointing first half, successfully navigating unprecedented volatility and increases in feed commodities supported by an increasing milk price across the country.

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

“NWF has delivered a record set of results, significantly ahead of the market expectations at the start of our financial year. It has been delivered by focusing on service to our customers across the country and our teams responding effectively to unprecedented volatility in cost inputs and issues of supply availability.  Oil and feed commodities were particularly impacted in our final quarter, as a consequence of the conflict in Ukraine. The Group has established a strong track record of resilience and performance and we are excited by the opportunities across the Group to continue our development.”