NWF Group plc
NWF Group plc: Final results for the year ended 31 May 2023
“A very strong set of results, significantly ahead of market expectations at the start of the financial year, with all divisions performing strongly, successful acquisitions in line with our growth strategy and refinancing to support continued development.”
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 2023.
| 2023 | 2022 | % | |
| Financial highlights | |||
| Revenue | £1,053.9m | £878.6m | +20.0% |
| Headline operating profit1 | £21.0m | £21.8m | -3.7% |
| Headline profit before taxation1 | £19.6m | £20.9m | -6.2% |
| Diluted headline earnings per share1 | 31.3p | 34.8p | -9.8% |
| Total dividend per share | 7.8p | 7.5p | +4.0% |
| Headline EBITDA1 | £25.8m | £26.6m | -3.0% |
| Net cash (excluding IFRS 16 lease liabilities) | £16.3m | £9.0m | +81.1% |
| Statutory results | |||
| Operating profit | £20.6m | £13.2m | +56.1% |
| Profit before taxation | £18.9m | £12.0m | +57.5% |
| Diluted earnings per share | 30.1p | 17.0p | +77.6% |
| Net debt (including IFRS 16 lease liabilities) | £13.5m | £19.2m | -27.6% |
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:
• Very strong results for the Group in spite of inflationary and cost-of-living challenges.
• Record revenues, with robust levels of profitability, against tough comparatives which benefitted from significant one-off gains.
• Resilient performance from Fuels as a result of providing excellent service to customers amidst supply constraints and volatile oil prices.
• Two fuel acquisitions completed in line with the strategy to consolidate the market, adding 39 million litres per annum.
• Strong performance improvement in Food with increased outbound activity and backloads along with warehouses at an effective operating capacity throughout the year, whilst continuing to win new business.
• Outstanding performance in Feeds, supporting ruminant farming customers who benefited from record high milk prices.
• The balance sheet remains strong with a healthy cash balance at the year-end providing significant flexibility to support investment driven growth.
• Continued increase in shareholder returns; proposed increase in the total dividend of 4.0% to 7.8p 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 £12.9 million (2022: £17.2 million). Resilient performance across the year in spite of the cost-of-living crisis and a mild winter impacting demand for heating oil. Localised supply shortages were overcome by national supply agreements and trunking fuel across the country to meet the needs of our customers across the depot network. Two acquisitions completed in the last twelve months.
Food – headline operating profit of £4.2 million (2022: £2.8 million). Continued successful development with an increase in outloads and backloads supported by a fully utilised warehouse operation with improved operating efficiencies. New business wins have continued in the year.
Feeds – headline operating profit of £3.9 million (2022: £1.8 million). Outstanding performance as a result of a resilient farming customer base, a record milk price and a desire to optimise yields through nutritional advice. The performance also benefited from significant commodity price gains in the summer months of 2022.
Richard Whiting, Chief Executive, NWF Group plc, commented:
“NWF has delivered another great result, significantly ahead of the market expectations at the start of our financial year. The three divisions have performed ahead of expectations in the year in spite of inflationary and cost-of-living challenges. Strategic growth has been delivered with the completion of two fuel acquisitions. With a strong positive cash position at year end and long-term banking facilities in place, the Group is well positioned to continue its successful development.”
It has been my privilege to lead NWF for the last 15 years and in retiring from the role next year I am delighted that Chris Belsham will be my successor.”
A virtual meeting will be held for analysts today at 09.30a.m. Please contact MHP for further details at nwf@mhpgroup.com.
Information for investors, including analyst consensus forecasts, can be found on the Group’s website at www.nwf.co.uk.
| Richard Whiting, Chief Executive | Reg Hoare/Catherine Chapman | Mike Bell/Ed Allsopp |
| Chris Belsham, Chief Executive Designate | ||
| NWF Group plc | MHP Group | Peel Hunt LLP |
| (Nominated Advisor and Broker) | ||
| Tel: 01829 260 260 | Tel: 020 3128 8339 | Tel: 020 7418 8900 |