REG - NWF Group PLC - Trading Statement

NWFAnnouncement

08/03/2022 07:00

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RNS Number : 9366D  NWF Group PLC  08 March 2022

For release 7.00am Tuesday 8 March 2022

NWF Group plc

 

NWF Group plc: Trading update

 

NWF Group plc ('NWF' or 'the Group'), the specialist distributor of fuel, food
and feed across the UK, today announces a trading update for the current year
ending 31 May 2022.

As set out in the interim results on 1 February 2022, the Group delivered a
very strong performance in the first six months of the year and carried over
positive momentum going into the second half.

Since then, overall trading performance has continued to be strong, with
demand conditions in the Fuels business accelerating to the extent that we now
anticipate full year results will be significantly ahead of the Board's
previous expectations. Cash generation remains strong with lower net debt
anticipated at year end.

 

Divisional highlights

 

In Fuels, the strong reported outperformance in the first half has continued.
Amidst significant volatility in the oil price, the business has seen elevated
demand in the short term, with customers valuing the high levels of service
provided across our depot network.

 

Food has performed as planned with storage levels having increased quickly as
manufacturers and importers respond to the strong demand seen in the first
half.

 

In Feeds with price increases continuing to be implemented, cost inflation has
been recovered and the focus remains on developing long term volume growth.

 

Impact of the conflict in Ukraine

 

Since the start of the conflict on 24 February the impact to date has been
most significant in Fuels, with the price of Brent Crude over $120 per barrel
and with very significant volatility leading to elevated levels of demand. To
date, there have been no major supply issues and we continue to meet demand
across the country.

 

Feeds commodity prices, including wheat and barley, have increased to
unprecedented highs, but with most raw materials now purchased for the winter
period this impact will be most keenly felt as we move into May and the summer
trading period.

 

We continue to monitor the situation very closely and our thoughts are with
all the people and their families impacted by this crisis.

 

 

Information for investors, including analyst consensus forecasts, can be found
on the Group's website at www.nwf.co.uk (http://www.nwf.co.uk)

 Richard Whiting, Chief Executive          Reg Hoare /            Mike Bell /

 Chris Belsham, Group Finance Director     James Bavister         Ed Allsop

 NWF Group plc                             MHP Communications     Peel Hunt LLP (Nominated advisor)

Tel: 01829 260 260
Tel: 020 3128 8170
Tel: 020 7418 8900

 

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