Nwf Group Plc · LSE:NWF
Nwf — FY2024 Earnings Presentation
38 slides from Nwf's earnings presentation, Jul 29, 2024
Slide 1: NWF Group Results Presentation
NWF Group Results Presentation Final results to 31 May 2024
Slide 2: A refreshed leadership team with significant experience
Group overview Leadership team A refreshed leadership team with significant experience Chris Belsham Katie Shortland Chief Executive Officer Chief Financial Officer Skills and experience Skills and experience • Joined the Group in April 2017 as CFO • Joined the Group in October 2023 • Considerable s
Slide 3: NWF Group is a specialist distributor across the UK
Group overview Our purpose and vision NWF Group is a specialist distributor across the UK Connecting essential suppliers with their customers Fuels Food Feeds • Third largest bulk liquid fuel distributor • Leading ambient grocery consolidator • Second largest ruminant feed in the UK • Complex operat
Slide 4: A solid financial performance, in line with market expectations
Group overview Results summary A solid financial performance, in line with market expectations Revenue Headline operating profit¹ Headline profit before tax¹ £950.6m £14.2m £12.5m -9.8% -32.4% -36.2% 24 £950.6m 24 £14.2m 24 £12.5m 23 £1,053.9m 23 £21.0m 23 £19.6m 22 £878.6m 22 £21.8m 22 £20.9m Headl
Slide 5: Fuels operating highlights: challenging market conditions
Fuels Operating highlights Challenging market conditions Revenue £677.8m -10.5% 24 677.8 23 757.2 22 621.1 Operating profit • Stable supply and low volatility in the oil price – expected normalisation of market pricing £7.9m -38.8% • Second consecutive mild winter – reduced demand for heating oil an
Slide 6: Food operating highlights: investing for growth
Food Operating highlights Investing for growth Revenue £77.7m +9.6% 24 77.7 23 70.9 22 62.6 Operating profit • Strong performance supported by increased storage and throughput £3.7m -11.9% • New business wins required utilisation of overflow warehousing through the year 24 3.7 – high efficiency and
Slide 7: Feeds operating highlights: strong operational performance
Feeds Operating highlights Strong operational performance Revenue £195.1m -13.6% 24 195.1 23 225.8 22 194.9 Operating profit • Lower demand through most of the year following ideal grass growing conditions £2.6m -33.3% in summer and autumn, some benefit from wet spring 24 2.6 • Normalised market aft
Slide 8: NWF Group plc Final results to 31 May 2024
NWF Group plc Final results to 31 May 2024 8
Slide 9: Income statement summary
Group overview Financial review Income statement summary May 2024 May 2023 • Revenue decreased by £m £m £103.3 million (9.8%): Revenue • £126.1 million from lower Fuels 677.8 757.2 commodity prices and product Food 77.7 70.9 mix movements Feeds 195.1 225.8 • Partly offset by £9.2 million Total reven
Slide 10: Income statement summary
Group overview Financial review Income statement summary May 2024 May 2023 • Headline PBT of £12.5 million £m £m • Bank interest decreased to £0.4 Operating profit 14.3 20.6 million (2023: £0.8 million) due to Finance costs (2.1) (1.7) lower average debt levels Headline profit before tax* 12.5 19.6
Slide 11: Balance sheet summary
Group overview Financial review Balance sheet summary May 2024 May 2023 • Fixed assets increased with the £m £m acquisition of the trade and Fixed assets 82.3 75.5 assets of Geoff Boorman Fuels Right of use assets 45.9 29.1 LLP and the fit-out of Lymedale Net working capital 5.7 2.3 • Net working ca
Slide 12: Pension summary
Group overview Financial review Pension summary 12.0 May 2024 May 2023 £m £m Assets 32.9 29.6 10.0 9.6 2.7 Liabilities (37.4) (39.2) Deficit (4.5) (9.6) 0.7 1.1 8.0 Related deferred tax asset 1.2 2.4 2.0 Net pension liability (3.3) (7.2) £m 6.0 Discount rate 5.25% 5.35% 4.5 Inflation rate (RPI) 3.35
Slide 13: Cash flow summary
Group overview Financial review Cash flow summary May 2024 May 2023 • Headline EBITDA* of £19.4 £m £m million (2023: £25.8 million) Operating profit 14.3 20.6 • Working capital movement Depreciation and amortisation 17.1 15.3 driven by customer mix and short-term timing differences Working capital m
Slide 14: Net debt summary
Group overview Financial review Net debt summary • Continued facilities of £61 million with NatWest until May 2026 with additional accordion facilities of £20 million • Net cash of £10.0 million at May 2024 with substantial facility and covenant headroom Facility Drawn £m £m Facility Invoice discoun
Slide 15: NWF Group plc Final results to 31 May 2024
NWF Group plc Final results to 31 May 2024 15
Slide 16: Our purpose, vision and values
Group overview Our purpose, vision and values Our purpose, vision and values Purpose Connecting essential suppliers with their customers. Why we exist All three current Group businesses operate, and have core competencies, in specialist distribution markets. Our reason to exist is to add value to su
Slide 17: Delivering value sustainably
Group overview ESG framework Delivering value sustainably Our sustainability framework consists of four strategic objectives that reflect our values and are designed to ensure we take a proactive and responsible approach to the way we operate. Together with our stakeholders and across our three busi
Slide 18: Our strategy – platform for growth
Group overview Our purpose and vision Our strategy – platform for growth Connecting essential suppliers with their customers Fuels Food Feeds • M&A – continued consolidation • Continued growth and development of • Utilise national operations platform through bolt-on and larger transactions customer
Slide 19: Fuels development strategy: consolidation and energy transition
Fuels Development strategy Consolidation opportunity Key Existing depot New depots acquired • Fragmented oil distribution market in the UK: in last 12 months • NWF number 3, with less than 5% market share • Clear proven acquisition process, 7 since 2019 deploying £26.0 million in total • Established
Slide 20: Warehouse expansion opportunity
Food Development strategy Warehouse expansion opportunity • Successful history of warehouse expansion Lymedale facility Customer locations 2024 to meet customer needs over last 60 years • Step change in 2020 with Crewe warehouse adding 240,000 ft2, 35,000 pallet spaces, exceeding planned returns • F
Slide 21: The Lymedale investment is expected to generate strong financial returns
Food Development strategy The Lymedale investment is expected to generate strong financial returns • 15-year lease with 12-year break clause • Total investment of £8.5 million phased over FY24 and FY25 • Expected to deliver annualised operating profits of approximately £2.8 million • Impact of IFRS
Slide 22: The NWF investment case
Group overview Summary and outlook The NWF investment case Focus on return on capital Acquisition opportunities Management and operational capability Return on capital employed is a key metric Solid track record with ambition Growing to service customer demand 16.5% 7 3 Group ROCE completed Fuels ac
Slide 23: Robust results and a clear strategy
Group overview Summary and outlook Robust results and a clear strategy Solid financial performance in 2024 • Fuels responded to normalising market conditions • Food delivered strong performance and the investment in Lymedale • Resilient margin and operational management in Feeds • Cash positive, inv
Slide 24: Q&A
Group overview Q&A Chris Belsham Katie Shortland Chief Executive Officer Chief Financial Officer NWF Group plc Final results to 31 May 2024 24
Slide 25: NWF Group plc Final results to 31 May 2024
NWF Group plc Final results to 31 May 2024 25
Slide 26: Additional information
Group overview Appendix Additional information • Analyst coverage and consensus forecasts • Business overview • Locations • Organisation • Main site photo • Group financial performance • Divisional track record • Additional market data NWF Group plc Final results to 31 May 2024 26
Slide 27: Analyst coverage and consensus forecasts
Group overview Analyst coverage and consensus forecasts Forecast1 Actual Consensus forecasts Analysts 2024 2024 2024 2025 2026 Peel Hunt* Charles Hall Revenue £957.4m £950.6m £963.2m £1,013.7m £1,077.7m Panmure Gordon Adrian Kearsey Headline operating profit £14.5m £14.2m £14.3m £15.9m £17.9m Shore
Slide 28: Fuels key figures
Fuels Business overview Key figures NWF Fuels is a leading distributor of fuel oil and fuel cards delivering over 659 million litres across the UK to nearly 107,000 customers. Litres per annum Depots 659m +3.6% 27 No change People Tankers 319 -3.0% 156 +0.6% NWF Group plc Final results to 31 May 202
Slide 29: Food key figures
Food Business overview Key figures Boughey Distribution is a leading consolidator of ambient grocery products to UK supermarkets with over 1,400,000ft² of warehousing and significant distribution assets. It works with over 120 customers on a National footprint. Pallets stored (average) Trucks 137,00
Slide 30: Feeds key figures
Feeds Business overview Key figures NWF Agriculture has grown to be a leading national supplier of ruminant animal feed to over 4,400 customers in the UK. It operates from sites in Cumbria, Cheshire and Devon. Tonnes Trucks 499,000 -2.9% 48 +23.1% People Mills 252 +11.5% 3 No change NWF Group plc Fi
Slide 31: Business locations
Group overview Business locations Feeds Aspatria Longtown Wardle* Wixland Food Crewe Wardle* Lymedale Fuels Ammanford Babbinswood Bangor Boston Burnley Burwell Crewe* Droitwich Dyserth Edenbridge Faringdon Fishers Pond Great Yarmouth Home Counties Kenilworth Immingham Kirkby Lonsdale Long Marston Ma
Slide 32: Our Executive Leadership Team
Group overview Organisation Our Executive Leadership Team Non-Executives Philip Acton (Chair until September 2024) Amanda Burton* (Chair from September 2024) Richard Armitage Tim Cooper* Chief Executive Officer Chief Financial Officer Chris Belsham Katie Shortland Fuels Food Feeds Dave Walmsley Ange
Slide 33: Wardle – Main operating site
Group overview Wardle – Main operating site NWF Group plc Final results to 31 May 2024 33
Slide 34: Track record
Group overview Track record Headline Operating Profit Headline PBT 25 25 21.8 21.0 20.9 19.6 20 20 14.3 14.2 15 12.9 15 13.2 11.9 12.5 £m £m 10.6 10.2 10.2 9.0 9.7 10 10 8.5 5 5 0 0 2017 2018 2019 2020 2021 2022 2023 2024 2017 2018 2019 2020 2021 2022 2023 2024 Headline EPS Dividend 40.0 9 35.0 8.1
Slide 35: Business track record
Group overview Business track record Key Operating profit Fuels Food Feeds 800 20 90 4.5 700 4.5 18 80 4 4 700 600 16 70 3.5 3.5 600 500 14 60 3 3 Operating profit £m Operating profit £m Operating profit £m 500 Revenue £m Total tonnes sold Litres sold m 12 400 50 2.5 2.5 400 10 40 2 2 300 8 300 30 1
Slide 36: Oil price
Fuels Group overview Oil price NWF Group plc Final results to 31 May 2024 36
Slide 37: Feeds additional market data
Price per tonne $ Price per tonne £ 250 50 150 0 100 200 250 450 0 50 350 550 100 300 400 150 200 500 Feeds 01/06/2023 01/06/2023 15/06/2023 15/06/2023 29/06/2023 29/06/2023 13/07/2023 13/07/2023 27/07/2023 27/07/2023 10/08/2023 10/08/2023 Group overview 24/08/2023 24/08/2023 07/09/2023 07/09/2023 2
Slide 38: Thank you
rus NWF GROUP PLC Thank you