Nwf Group Plc · LSE:NWF
Nwf — H1 2014/15 Earnings Presentation
24 slides from Nwf's earnings presentation, Feb 3, 2015
Slide 1: Interim Results to 30 November 2014
INTERIM RESULTS TO 30 NOVEMBER 2014
Slide 2: Key highlights
Group overview NWF Group plc Interim results to Key highlights 30 November 2014 » Solid results despite volatile markets » Invested in a new Feeds facility and a new Fuel depot » Feeds: maintained volume in a tough market with » Strong cash management, lower net debt than prior half year falling com
Slide 3: Operational highlights: Feeds
Operational highlights NWF Group plc Interim results to Feeds 30 November 2014 » Market demand for feed 3% lower than prior year » Increased volumes and market share » Significant falls in commodity prices of c.20% in the period impacting margins » High silage volumes, very variable quality » Milk p
Slide 4: Operational highlights: Food
Operational highlights NWF Group plc Interim results to Food 30 November 2014 » Profit improvement from efficiency gains » Outloads comparable to prior year despite customers’ lower stock levels » Navigated successfully through nationwide shortage of drivers » Long term customer contracts underpin v
Slide 5: Operational highlights: Fuels
Operational highlights NWF Group plc Interim results to Fuels 30 November 2014 » Unusually warm summer and autumn conditions » Dramatic fall in oil prices » Increased gas oil and premium heating oil sales » Continued focus on depot performance and operating efficiency » New depot opened in Mansfield
Slide 6: Income statement summary
Financial Review NWF Group plc Interim results to Income statement summary 30 November 2014 Nov 2014 Nov 2013 Variance May 2014 £m £m % £m Revenue Food 18.8 18.5 1.6% 36.4 Feeds 68.0 68.4 (0.6%) 160.7 Fuels 160.3 172.2 (6.9%) 340.6 Total revenue 247.1 259.1 (4.6%) 537.7 Operating profit Food 1.5 1.1
Slide 7: Balance sheet summary
Financial Review NWF Group plc Interim results to Balance sheet summary 30 November 2014 Nov 2014 Nov 2013 May 2014 £m £m £m Fixed assets 55.0 54.0 54.0 Net working capital 11.2 13.3 9.8 Assets employed 66.2 67.3 63.8 Pension deficit (19.7) (17.0) (17.3) Net debt (12.4) (16.8) (11.7) Tax provisions
Slide 8: Net debt summary
Financial Review NWF Group plc Interim results to Net debt summary 30 November 2014 » Debt Summary » Committed facilities of £65.0m with RBS until 18.0 October 2019 Movement in Net Debt 16.0 Facility Facility Drawn 14.0 7.7 Invoice Discounting £50.0m £12.4m 12.0 2.3 RCF/Guarantees £14.0m - 10.0 £m O
Slide 9: Cash flow summary
Financial Review NWF Group plc Interim results to Cash flow summary 30 November 2014 Nov 2014 Nov 2013 May 2014 £m £m £m Cash flows from operating activities Operating profit 2.8 3.6 8.5 Depreciation and amortisation 2.0 1.8 3.7 Working capital (1.3) (3.0) 1.1 Other (0.8) (0.5) (0.7) Operating cash
Slide 10: Development strategy: Feeds
Development strategy NWF Group plc Interim results to Feeds 30 November 2014 » Agriculture an attractive market for the Group » Population growth » Relationships with 4,300 farmers » Trusted adviser to farmers » Short term challenging conditions for Dairy farmers » Offering includes advice and techn
Slide 11: Development strategy: Food
Development strategy NWF Group plc Interim results to Food 30 November 2014 » Market for ambient groceries challenging but stable » Big 4, discounters, deflation » Working with blue chip brands and retailers » Key value proposition » High service levels » Low cost and efficient » Boughey a major reg
Slide 12: Development strategy: Fuels
Development Strategy NWF Group plc Interim results to Fuels 30 November 2014 » Third largest oil distributor in the UK » Low cost depot focused operating model » Network built primarily by acquisition » Strong track record » Low ROS, high ROCE > 20% Development strategy » Driving for business balanc
Slide 13: Summary & outlook
Group overview NWF Group plc Interim results to Summary & outlook 30 November 2014 » Solid result despite volatile markets » Strong cash performance » Significant changes in the Group’s markets with overall demand stable » Low oil prices marginally positive for the Group » Experienced operational ma
Slide 14: Additional information
Group overview NWF Group plc Interim results to Additional information 30 November 2014 » Business overview » Locations » Organisation » Main site photo » Five year financial performance » Ten year divisional track record » Additional market data 14
Slide 15: Business overview: Feeds
Business overview NWF Group plc Interim results to Feeds 30 November 2014 Supply of feed to ruminants in the UK – principally dairy » National player – feeds one in six dairy cows in the UK, number two in the market » 580,000 tonnes per annum » Feed dairy, beef and sheep » Sell added value products
Slide 16: Business overview: Food
Business overview NWF Group plc Interim results to Food 30 November 2014 Consolidation of ambient grocery products to UK supermarkets » 100,000 pallet spaces » 800,000ft2 of warehousing in Wardle » Market leader in the North West » 425 people » 100 trucks, 233 trailers » 99.7% service level » 200 cu
Slide 17: Business overview: Fuels
Business overview NWF Group plc Interim results to Fuels 30 November 2014 Supply of fuels and fuel cards to commercial, domestic and retail customers across the UK » Third largest oil distributor in the UK » 57,000 customers » 202 people » 18 depots across the UK » Supply 52 retail petrol stations »
Slide 18: Locations
Group overview NWF Group plc Interim results to Locations 30 November 2014 Feeds Dumfries Wardle* Stone Wixland Food Wardle* Fuels Ammanford Babbinswood Bangor Boston Burnley Burwell Droitwich Dyserth Great Yarmouth Kenilworth Kingsbury Long Marston Mansfield NoEngham Southampton Stoke Wardle* Yate 1
Slide 19: Organisation
Group overview NWF Group plc Interim results to Organisation 30 November 2014 Chief Executive Non-Executive Directors Richard Whi0ng Mark Hudson (Chairman) Yvonne Monaghan Philip Acton Finance Director Company Secretary Brendon Banner Rob Andrew Food Feeds Fuels 425 employees 188 employees 202 emplo
Slide 20: Wardle main site
Group overview NWF Group plc Interim results to Wardle main site 30 November 2014 20
Slide 21: Five year financial performance
Group Overview NWF Group plc Interim results to Five year financial performance 30 November 2014 Revenue EPS 600 14 13.1 540.2 545.8 537.7 12.4 11.9 12 500 10.9 463.8 379.8 10 400 7.8 £m 8 p 300 6 200 4 100 2 0 0 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 Headline PBT 6 DPS 9 8.5 7.9 7.7 5.1
Slide 22: Divisional track record
Group Overview NWF Group plc Interim results to Divisional track record 30 November 2014 Feeds 180 Food 50 3.5 4.0 160 45 3.5 3.0 140 40 3.0 2.5 120 35 Operating profit £m Operating profit £m Revenue £m 2.5 Revenue £m 100 30 2.0 2.0 25 80 1.5 1.5 20 60 15 1.0 40 1.0 10 20 0.5 0.5 5 0 0.0 0 0.0 2005
Slide 23: Fuels additional market data
Group overview NWF Group plc Interim results to Fuels additional market data 30 November 2014 23
Slide 24: Feeds additional market data
Group overview NWF Group plc Interim results to Feeds additional market data 30 November 2014 24