REG - NWF Group PLC - Trading Update

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RNS Number : 4490I  NWF Group PLC  21 November 2025

For immediate release

NWF Group plc

 

NWF Group plc: Pre-close Trading Update

 

NWF Group plc ('NWF' the 'Company' or the 'Group'), the specialist distributor
today provides a trading update for the half-year ending 30 November 2025 (the
"Period").

Trading update

Trading across the Group's three businesses since its trading statement issued
at the time of its AGM in September (the "AGM Statement") has been mixed, with
solid performances in Food and Feeds more than off-set by a disappointing
trading period for Fuels.

Fuels

In the AGM Statement, it was noted that demand for domestic heating oil and
commercial fuels was below the prior year, and data published by the
Department for Energy Security and Net Zero ("DESNZ") on 30 October 2025 has
reported that heating oil volumes in the three-month period to August 2025
were 25 per cent lower than the prior year.  These lower volumes have
continued to be experienced, largely attributable to temperatures through the
Autumn being warmer than historical averages. With the seasonally busier
winter months still to come, the Group expects that heating oil demand will
return to normal levels, but this will not compensate for the unusually lower
volumes in the first half of the year.

Demand for commercial diesel and gas oil has also been lower in the period
following the AGM Statement. Gas oil, which is a higher margin product for the
Group, has been specifically impacted, with DESNZ reporting on 30 October 2025
that gas oil volumes in the three-month period to August 2025 were nearly 30
per cent lower than the prior year.

The suppressed market demand for both domestic and commercial fuel has
resulted in an increasingly competitive market with pricing pressure impacting
margins and profitability of the business.

As announced in the Group's AGM trading statement in September, the national
roll out of the Fuels regional operating model was concluded in July. Against
the backdrop of the difficult market conditions this operational change has
created some short term challenges as the business embeds the new operating
model. The investment that has been made will result in commercial and
operational improvements as the year progresses.

 

Food

 

The Food business has secured new contracted business during the first half of
the year, and the benefits from the restructuring of the cost base undertaken
in June 2025 are being realised. Taken together, this has resulted in a
financial performance for the business ahead of the comparative period.
Management continues to focus on delivering further efficiency opportunities
and delivering on its growth strategy to develop a national network of scale.

 

Feeds

 

The positive momentum in Feeds referred to in the AGM Statement has continued,
with volumes in line with the prior year, and healthy margins maintained as
the business moves into the traditionally busier half of the year. The milk
price remained stable throughout the Period, which encouraged customers to
feed livestock to maximise yield.

 

Outlook

 

The Group expects the performance of Fuels to improve in the second half as
demand for domestic heating oil increases through the colder months.  Despite
the anticipated recovery, the Board does not believe this will offset the
shortfall experienced in the first half, and accordingly, the Group results
for the financial year ending 31 May 2026 are now expected to be significantly
below current market expectations(1).

The medium-term outlook for domestic heating oil remains positive, and on 29
October 2025, DESNZ confirmed that the UK Government would no longer proceed
with previous Government proposals to implement regulations restricting fossil
fuel heating installations in off-gas grid properties. The Board will continue
to monitor developments regarding the Government's proposals and will review
the outcome of the recently issued consultation when published.

Whilst this short-term trading performance is disappointing, the Group's
financial position is strong and the Board remains confident in its
medium-term prospects, and continues to focus on its sustainable growth
strategy of development through targeted acquisitions, growth investment, and
business improvement initiatives, supported by a strong balance sheet.

 

Notice of Results

NWF expects to announce its results for the half year ending 30 November 2025
in early February 2026.

 

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.

 

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

(1)Company compiled full year analyst consensus as at 20 November 2025 is for
Headline operating profit of £17.9m and Headline profit before tax of
£13.2m.

 

 Chris Belsham, Chief Executive            Reg Hoare / Catherine Chapman  Mike Bell / Ed Allsopp
 Katie Shortland, Chief Financial Officer

 NWF Group plc                             MHP                            Peel Hunt LLP
                                                                          (Nominated Adviser and broker)
 Tel: 01829 260 260                        Tel: 07711 191518              Tel: 020 7418 8900

 

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