NWF Group plc Half Year Results for the Period to 30th November2021

NWF Group plc 

NWF Group plc: Half Year results for the period ended 30 November 2021

NWF Group plc ('NWF' or 'the Group'), the specialist distributor of fuel, food and feed across the UK, today announces its half year results for the period ended 30 November 2021.

1  Headline operating profit excludes exceptional items (see note 4) 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.

2  Net debt to headline EBITDA is calculated based on net debt excluding IFRS 16 lease liabilities. The headline EBITDA calculation excludes the impact of IFRS 16 depreciation.

Group highlights

• Underlying results significantly ahead of prior year, underpinning the Board's confidence in delivering full year expectations.
• Resilience of the Group demonstrated with year-on-year growth in Fuels and Food which has more than offset weaker Feeds performance in the first half.
• The Group's financial position remains strong, with net debt halved year-on-year and leverage at 0.4x which provides capacity for continued investment in support of strategic initiatives, the pursuit of further development opportunities and a maintained interim dividend.
• The Group has maintained a stable workforce, including a full complement of drivers, and managed the prevailing supply chain environment effectively, enabling it to continue to service customer needs uninterrupted.
• The Group has traded well since the period end and carries encouraging momentum into the seasonally busier second half, with the Board confident in delivering its full year expectations.

Divisional highlights

Fuels – headline operating profit of £3.6 million (H1 2020: £1.9 million). Strong performance ahead of expectations and the prior year period, with a short-term benefit from increased demand during the Autumn fuel shortage, with NWF able to maintain full service from all 25 depots.

Food – headline operating profit of £1.5 million (H1 2020: £0.5 million). A performance significantly ahead of prior year benefitting from enlarged capacity, improved efficiency in operations and stock in optimal locations.

Feeds – headline operating loss of £0.4 million (H1 2020: £0.6 million profit). As expected, performance was behind the prior year as a result of lower volumes in the period and the impact of significant commodity and cost inflation. As a consequence of the lower level of performance in Feeds, a non-cash goodwill and fixed asset impairment of £8.4 million has been recognised in the half year results.

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

“We have delivered a very strong first half performance, despite volatile market demand and significant inflationary pressures, demonstrating a return on recent investments and the continued resilience of the Group. The Group has been successful in retaining its employees, including drivers, ensuring we have continued to service our customers' needs. Both Fuels and Food have delivered significant year-on-year growth in the first half, more than offsetting a weaker Feeds result and starting our busier second half with good momentum. We continue to focus on the long-term growth of the Group, with a clear investment strategy which is supported by a strong financial position.”