REG - NWF Group PLC - Trading Update and Renewed Banking facilities

NWFAnnouncement

09/06/2023 07:00

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RNS Number : 1715C  NWF Group PLC  09 June 2023

 

NWF Group plc: Trading Update and Renewed Banking facilities

 

NWF Group plc ('NWF' the 'Company' or the 'Group'), the specialist distributor
of fuel, food and feed across the UK, today provides a trading update for the
year ended 31 May 2023 ("FY23"), together with details of its renewed banking
facilities.

Trading update

As set out in the trading update of 9 March 2023, the Group delivered strong
performances from all businesses in the first half. Pleasingly, this positive
momentum has been sustained through the second half and consequently, FY23
headline profit before tax is now anticipated to be ahead of the current
market expectation(1) and in excess of £19.0 million(2).

Net cash at the year-end is also higher than previous expectations as a result
of the stronger trading result, ongoing disciplined cash management across the
Group and some positive working capital movements.

Fuels:

·      Volumes recovered in the second half as the team focused on
increasing commercial business

·      The Sweetfuels acquisition has been successfully integrated and
is performing strongly

·      The Board continues appraising earnings accretive acquisition
opportunities in line with NWF's strategy of consolidating a fragmented UK
Fuels market

Food:

·      Demand has continued to be robust with storage close to capacity
and increased outloads supported by improved operating efficiency

Feeds

·      Solid demand for ruminant feed and ancillary products across the
year supported by a strong milk price with the business effectively managing
commodity cost volatility and inflationary cost increases

Renewed Banking facilities

The Group has completed the renewal of its banking facilities with NatWest
Group for a three year term on competitive rates, with an option to extend by
two years. The facilities of £61 million comprise an invoice discounting
facility of £50 million, a revolving credit facility of £10 million and an
overdraft of £1 million, with a further £20 million accordion available to
support the development strategy of the Group.

Richard Whiting, Chief Executive of NWF said:

"We have delivered a very strong result for the Group and it's great to report
that all three divisions have performed ahead of expectations in spite of the
inflationary and cost of living challenges. The Group is well positioned with
a net cash position and new banking facilities to further develop and grow."

 

1.     Company compiled consensus headline PBT of £17.5 million;
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)

2.     Stated before amortisation of acquired intangibles and the net
finance cost of the Group's defined benefit scheme

 

Certain information contained in this announcement would have constituted
inside information (as defined by Article 7 of Regulation (EU) No 596/2014),
as it forms part of domestic law by virtue of the European Union (Withdrawal)
Act 2018) ("MAR") prior to its release as part of this announcement and is
disclosed in accordance with the Company's obligations under Article 17 of
those Regulations.

 

 Richard Whiting, Chief Executive       Reg Hoare / Catherine Chapman  Mike Bell / Ed Allsopp
 Chris Belsham, Group Finance Director  / Christian Harte

 NWF Group plc                          MHP Communications             Peel Hunt LLP
                                                                       (Nominated Adviser and broker)
 Tel: 01829 260 260                     Tel: 020 3128 8339             Tel: 020 7418 8900

 

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