Nwf Group Plc · LSE:NWF
Nwf — H1 2008/09 Earnings Presentation
24 slides from Nwf's earnings presentation, February 2009
Slide 1: Interim Results, Six months to 30 November 2008
NWF Group plc Preliminary Results Year to 31 May 2008 1 NWF Group plc Interim Results Six months to 30 November 2008 Distribution Feeds Fuels
Slide 2: Contents
NWF Group plc Interim Results to 30 November 2008 2 Contents Page Group overview 3 Operational highlights 4 Financial review 8 Market opportunities and short term outlook 12 Summary 15 Appendices 16 Group organisation Group / divisional historical performance Business backgrounds Locations The Board
Slide 3: Group overview
NWF Group plc Interim Results to 30 November 2008 3 Group overview Group focused as a specialist distributor of food, feed and fuel Strong performance in the first half Revenue1 up 21.8% to £198.1 million (2007: £162.6 million) Operating profit1 up 68.2% to £3.7 million (2007: £2.2 million) Profit b
Slide 4: Operational highlights - Distribution
NWF Group plc Interim Results to 30 November 2008 4 Operational highlights - Distribution £m H1 2008/9 H1 2007/8 % Sales 20.5 15.7 +30.6 Operating profit 1.0 0.5 +100.0 Pallet spaces 110,000 95,000 +15.8 (period end) Warehousing at 95% of capacity, from August 2008 Successful exit from leased facili
Slide 5: Operational highlights - Feeds
NWF Group plc Interim Results to 30 November 2008 5 Operational highlights - Feeds £m H1 2008/9 H1 2007/8 % Sales 49.4 41.2 +19.9 Operating profit 1.4 1.2 +16.7 Tonnes 213,000 230,000 -7.4 Continued significant volatile raw material markets (Jan 09 £ wheat / tonne: 152 87) Milk production below quot
Slide 6: Operational highlights - Fuels
NWF Group plc Interim Results to 30 November 2008 6 Operational highlights - Fuels £m H1 2008/9 H1 2007/8 % Sales 128.2 105.7 +21.3 Operating profit 1.3 0.5 +160.0 Litres (million) 167 169 -1.2 Record high oil prices significant volatility (Brent crude $128 / barrel $147 / barrel $53 / barrel) Very
Slide 7: Garden Centres (discontinued operations)
NWF Group plc Interim Results to 30 November 2008 7 Garden Centres (discontinued operations) £m H1 2008/9 H1 2007/8 Profit after tax -3.8 -0.5 Successful sale in October 2008 for gross consideration of £14.5 million Four key reasons for sale Focus on specialist distribution businesses & exit retail
Slide 8: Financial review – segmental income statement
NWF Group plc Interim Results to 30 November 2008 8 Financial review – segmental income statement Nov 2008 Nov 2007 Growth £m £m % Continuing operations Revenue Distribution 20.5 15.7 30.6% Feeds 49.4 41.2 19.9% Fuels 128.2 105.7 21.3% Total revenue 198.1 162.6 21.8% Operating profit Distribution 1.
Slide 9: Financial review - income statement
NWF Group plc Interim Results to 30 November 2008 9 Financial review - income statement Nov 2008 Nov 2007 Growth £m £m % Continuing operations Revenue 198.1 162.6 21.8% Operating profit 3.7 2.2 68.2% Net finance costs: Fair value losses on interest rate swaps (0.6) 0.0 - Other net finance costs (1.3
Slide 10: Financial review – balance sheet summary
NWF Group plc Interim Results to 30 November 2008 10 Financial review – balance sheet summary Nov 2008 Nov 2007 £m £m Non current assets Property, plant and equipment 37.6 57.0 Intangible assets 5.4 10.2 Deferred tax asset 1.2 1.0 Current assets Inventories 4.7 9.6 Trade and other receivables 53.5 4
Slide 11: Financial review - cash flow summary
NWF Group plc Interim Results to 30 November 2008 11 Financial review - cash flow summary Nov 2008 Nov 2007 Change £m £m £m Cashflows from operating activities Operating profit 3.6 2.1 1.5 Depreciation of property, plant and equipment 1.7 1.9 (0.2) Increase in working capital (0.1) (8.5) 8.4 Other (
Slide 12: Distribution Market opportunities & short term outlook
NWF Group plc Interim Results to 30 November 2008 12 Distribution Market opportunities & short term outlook UK Produced Ambient Grocery Market Imported Ambient Grocery Market Boughey UK pallets 50,000 Boughey imported pallets 60,000 Total UK pallets 1,160,000 Total imported pallets 2,000,000 Boughey
Slide 13: Feeds Market opportunities & short term outlook
NWF Group plc Interim Results to 30 November 2008 13 Feeds Market opportunities & short term outlook Ruminant Feed Market – tonnage ‘000s Ruminant Feed Market – tonnage 5,000 4,500 4,000 NWF 3,500 BOCM 3,000 Carrs Billington 2,500 Mole Valley 2,000 Blend Wynnstay 1,500 Compound H.J.Lea Oakes 1,000 5
Slide 14: Fuels Market opportunities & short term outlook
NWF Group plc Interim Results to 30 November 2008 14 Fuels Market opportunities & short term outlook UK Fuel Market 25.2 billion litres UK Fuel Market - NWF 1.4% share DCC Energy Total Butler Burning oil Watson Gas oil NWF Fuels Diesel Pace Petrol Bayford Others Lower overall market demand for fuel
Slide 15: Summary
NWF Group plc Interim Results to 30 November 2008 15 Summary Group focused as a specialist distributor of food, feed and fuel Strong performance in the first half Trading good across all three divisons Well positioned for the second half, in line to meet market expectations Robust markets and focuse
Slide 16: Appendices
NWF Group plc Interim Results to 30 November 2008 16 Appendices Group organisation Group / divisional historical performance Business backgrounds Locations The Board
Slide 17: Group organisation
NWF Group plc Interim Results to 30 November 2008 17 Group organisation Chief Executive Non-Executive Directors Richard Whiting Mark Hudson (Chairman) John Acornley David Southworth Finance Director Company Secretary Paul Grundy Rob Andrew Distribution Feeds Fuels Managing Director Managing Director
Slide 18: Group performance (continuing operations)
NWF Group plc Interim Results to 30 November 2008 18 Group performance (continuing operations) Revenue PBT 400 7 350 6 300 5 250 £m 4 200 £m 3 150 2 100 50 1 0 0 2004 2005 2006 2007 2008 2004 2005 2006 2007 2008 EPS * DPS* 10 5 9 8 4 7 6 3 p 5 p 4 2 3 2 1 1 0 0 2004 2005 2006 2007 2008 2004 2005 200
Slide 19: Divisional performance
NWF Group plc Interim Results to 30 November 2008 19 Divisional performance Distribution Feeds 35 2.0 120 1.8 3.0 30 1.6 100 2.5 25 1.4 80 Revenue £m 1.2 Revenue £m 20 2.0 PBIT £m PBIT £m 1.0 60 15 1.5 0.8 10 0.6 40 1.0 0.4 5 20 0.2 0.5 0 0.0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 0 0.0 1
Slide 20: Business background - Distribution
NWF Group plc Interim Results to 30 November 2008 20 Business background - Distribution Market Consolidation of groceries en route to UK supermarkets Our business Boughey Distribution: national business Destinations are primarily RDC’s of supermarket chains Ambient warehousing for 115,000 pallets on
Slide 21: Business background - Feeds
NWF Group plc Interim Results to 30 November 2008 21 Business background - Feeds Market 12,000 important dairy farmers in England 1.9m dairy cows Around 3 million tonnes of dairy feeds per annum Reasonably steady demand Our business One of only two national players Around 16% market share Capacity f
Slide 22: Business background - Fuels
NWF Group plc Interim Results to 30 November 2008 22 Business background - Fuels Market Our business 1.5 million homes with oil fired heating in Great 13 strategic depot locations in England and Britain (and growing) Wales, 10 with bulk storage Freight and passenger transport Major distributor of Te
Slide 23: Locations
NWF Group plc Interim Results to 30 November 2008 23 Locations
Slide 24: The Board
NWF Group plc Interim Results to 30 November 2008 24 The Board Mark Hudson – Chairman (age 62) Joined the Board in 1985. Chairman 2006. Mark is an agricultural business adviser and dairy farmer. Past President of the CLA. Chair of Game Conservancy Trust. Council Member Duchy of Lancaster. Richard Wh