REG - NWF Group PLC - Trading Statement

NWFAnnouncement

14/12/2021 07:00

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RNS Number : 5048V  NWF Group PLC  14 December 2021

For release 7.00am Tuesday 14 December 2021

NWF Group plc

 

NWF Group plc: Trading Update & Chair Succession

 

NWF Group plc ('NWF' or the Group), the specialist distributor of fuel, food
and feed across the UK, today provides a trading update for the half year
ended 30 November 2021 (the "Period"), together with the announcement of the
proposed Chair succession process.

Trading update

The Board is pleased to report that trading in the latter part of the Period
remained strong, with underlying trends in the Group's markets being
consistent through the half. As a result, NWF expects to report underlying
results for the first half which will be significantly ahead of the prior
year, demonstrating a return on recent investments and the continued
resilience of the Group. This strong first half performance provides a solid
platform for the business entering the seasonally important third quarter and
consequently the Board remains confident of delivering its full year
expectations.

Fuels:

·    A strong performance, which was ahead of expectations and the prior
year comparative period. The division saw a short-term benefit arising from
increased demand related to the fuel shortages in the Autumn, with the Group
maintaining continuity of supply at all depots across the country. NWF
experienced no supply shortages during this period and has a full complement
of drivers to meet demand.

·   The Board continues to appraise earnings enhancing acquisition
opportunities in line with the strategy of consolidating a fragmented UK Fuels
market.

 

Food:

·   Performed well ahead of the prior year, as the business benefitted
from its enlarged capacity, experiencing strong demand through the Period, as
well as enhanced efficiency with stock in optimum locations.

·    There remains some near term volatility in market conditions, as
customers experience difficulties in manufacturing and importing ambient
groceries and supermarkets have increased stock levels as a consequence of
concerns around driver availability and supply chain issues.

 

Feeds:

·     A disappointing performance, behind prior year as a result of lower
volumes, significant commodity price and cost inflation and the challenges of
passing this though to customers in the short term.

·    In the latter part of the Period, price increases were implemented to
cover the inflationary pressures and there has been an element of volume
recovery, albeit still lower than prior year.

 

Net debt at the half year was materially lower than prior year as a result of
the stronger trading result, together with ongoing disciplined cash management
across the Group. This provides the business with significant capacity to
support its investment driven growth strategy.

 

Chair succession process

In line with NWF's governance policy, current Non-Executive Chair of the
Group, Philip Acton will be stepping down from the Board at the time of the
2022 AGM, in September, having completed nine years' service with NWF. David
Downie, currently Senior Independent Non-Executive Director will be appointed
as Chair at that time. The process to recruit an additional Non-Executive
Director will commence shortly, with an appointment to be made ahead of the
2022 AGM.

 

Richard Whiting, Chief Executive of NWF said:

"We have delivered a very strong first half performance, despite volatile
market demand and significant inflationary pressures. The Group has been able
to retain labour and 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 we
enter our seasonally busier second half with good momentum.  We continue to
focus on the long-term growth of the Group, with a clear strategy which is
supported by a very strong financial position."

 

Information for investors, including analyst consensus forecasts, can be found
on the Group's website at www.nwf.co.uk
(https://gbr01.safelinks.protection.outlook.com/?url=http%3A%2F%2Fwww.nwf.co.uk%2F&data=04%7C01%7Claura.bright%40nwf.co.uk%7Cacfefd5faf814463f73808d9b8d4fd5d%7C121e39b5771246638ef017c5f0f18c8e%7C0%7C0%7C637744047179946080%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C3000&sdata=62FfBE90G1RjLubIWFASbP5Ssey7gAag1RU1QV66g3E%3D&reserved=0)
 

 

 

 Richard Whiting, Chief Executive       Reg Hoare / James Bavister  Mike Bell / Ed Allsopp
 Chris Belsham, Group Finance Director

 NWF Group plc                          MHP Communications          Peel Hunt LLP
                                                                    (Nominated Advisor)
 Tel: 01829 260 260                     Tel: 020 3128 8591          Tel: 020 7418 8900

 

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