REG - NWF Group PLC - Trading Statement

NWFAnnouncement

16/06/2022 07:01

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RNS Number : 0408P  NWF Group PLC  16 June 2022

NWF Group plc

For release 7.00 a.m. 16 June 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 year ended 31
May 2022.

 

Trading update

The Group is pleased to report it has delivered a record year, in line with
its trading update issued on 10 May 2022, and a materially stronger
performance than had been expected at the beginning of the financial year.
These results demonstrate both the resilience of the Group and its ability to
deliver a good financial performance in volatile market conditions. Cash
generation has remained strong and the Group was cash positive at the
year-end, compared to reporting net debt last year.

 

Fuels:

Outstanding performance which benefitted from very significant short-term
volatility in oil prices and periods when the UK market was supply
constrained. The teams in the Group's 25 depots have focused on maintaining
service to existing customers which at times has involved trunking fuel across
the country to meet regional shortfalls and adapting pricing strategies to
mitigate exposure to the challenging commodity price fluctuations.

 

Food:

A strong performance across the year with warehouses at an effective operating
capacity, and the achievement of significant efficiency improvements. The
business has also been successful at passing on inflationary costs by working
closely with customers and maintaining high service levels.

 

Feeds:

Good recovery in performance in the second half with the business effectively
managing the commodity market price increases and volatility, particularly in
the final quarter. Positively, increases in milk prices have been implemented
to ensure farmers are incentivised to produce milk despite having higher
energy, fertiliser, and feed price inputs.

 

Richard Whiting, Chief Executive of NWF said:

"We have delivered a record result driven by high levels of service provided
to customers across the Group. The outperformance is principally attributed to
the Fuels division where there were both fuel availability issues and
significant price volatility. Our depot-based operating model has again proved
robust in providing service to local customers, whilst utilising our national
supply agreements to ensure we maintain deliveries to all our customers. We
entered the new financial year in good shape with strategic progress
continuing and a more stable operating environment for the Fuels Division."

 

 

 

 

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/Catherine Chapman    Mike Bell/Ed Allsopp

MHP Communications
Peel Hunt LLP
 Chris Belsham, Finance Director
Tel: 020 3128 8170
(Nominated Adviser)

NWF Group plc
Tel: 020 7418 8900

Tel: 01829 260 260

 

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