Nwf Group Plc · LSE:NWF
Nwf — H1 2006/07 Earnings Presentation
21 slides from Nwf's earnings presentation, January 2007
Slide 1: NWF Group plc 2006/07 Interim Results
NWF Group plc 2006/07 Interim Results to 30 November 2006
Slide 2: Group overview
Group overview • 52nd company to list on AIM in 1995 • Based in Wardle, Cheshire, with 24 other locations • Four growing businesses with a common history: ¾ Distribution - grocery logistics to supermarkets ¾ Feeds - mainly for dairy cows ¾ Fuels - for homes, businesses and vehicles ¾ Garden Centres
Slide 3: Wardle in 2007
Wardle in 2007 • Build started June 2006, completion summer 2007 • Creating room for 60,000 pallets - predicted to be at full capacity end 2007/08 3
Slide 4: Locations
Locations 4
Slide 5: Group organisation
Group organisation Graham Scott Non- Executive Directors Chief Executive Mark Hudson (Chairman), John Acornley, David Southworth Paul Grundy Rob Andrew Finance Director Company Secretary Keith Forster David Warrington Kevin Kennerley Ian Barnes Managing Director Managing Director Managing Director M
Slide 6: Operational highlights
Operational highlights • Distribution ¾ commenced warehouse building project (June 2006) • Feeds ¾ invested to improve quality and capacity in Wixland (Devon) • Fuels ¾ acquired Browns of Burwell (Suffolk) (July 2006) • Garden Centres ¾ acquired AA Gent (garden centre site, Manchester) (July 2006) ¾
Slide 7: Financial key points
Financial key points • turnover up 17% to £156m (£134m) • all four businesses' profit ahead of last year • pre-tax profit before goodwill amortisation up 27% to £2.6m (£2.1m) • pre-tax profit after goodwill amortisation up 27% to £2.3m (£1.8m) • basic earnings per share up 9% to 16.5p (15.2p) • inte
Slide 8: Profit and loss
Profit and loss Half year to Half year to Year ended Nov 2006 Nov 2005 Growth May 2006 £'000 £'000 % £'000 Turnover Distribution 14,499 13,632 6.4 27,226 Feeds 37,596 30,809 22.0 71,911 Fuels 93,734 82,734 13.3 178,151 Garden Centres 9,906 6,441 53.8 15,585 Total turnover 155,735 133,616 16.6 292,87
Slide 9: Balance sheet
Balance sheet Half year to Half year to Year ended Nov 2006 Nov 2005 Growth May 2006 £'000 £'000 % £'000 Intangible fixed assets 9,528 8,199 16.2 9,285 Tangible fixed assets 33,529 23,858 40.5 25,005 Stocks 7,665 6,332 21.1 7,094 Debtors 41,019 37,979 8.0 39,515 Cash and bank 59 54 945 Creditors due
Slide 10: Cash flow
Cash flow Half year to Half year to Year ended Nov 2006 Nov 2005 Growth May 2006 £'000 £'000 % £'000 Operating cash inflow 1,655 1,882 9,111 Interest paid (508) (457) (1,210) Tax paid (862) (752) (1,598) Dividends (1,225) (1,000) (1,421) Purchase of tangible fixed assets (8,518) (1,241) (2,822) Sale
Slide 11: Overview - Distribution
Overview - Distribution • The Market ¾ Consolidation of groceries en route to UK supermarkets • Our Business ¾ Boughey Distribution services all of the UK ¾ Destinations are primarily RDC’s of supermarket chains ¾ Ambient warehousing for 78,000 pallets on three sites ¾ Currently 100% effective utili
Slide 12: New Wardle Warehouses
New Wardle Warehouses Quip 12
Slide 13: Overview - Feeds
Overview - Feeds • The Market ¾ 12,000 important dairy farmers in Britain, 1.9m dairy cows ¾ Around 3 million tonnes of dairy feeds per annum ¾ Reasonably steady demand • Our Business ¾ One of only two national players ¾ Around 15% market share ¾ Capacity for 400,000 tonnes of pelleted feeds at Ward
Slide 14: Overview - Fuels
Overview - Fuels • The Market ¾ 900,000 homes with oil fired heating (and growing) ¾ Rural service stations ¾ Industrial/off-road users of gas oil ¾ Freight and passenger transport companies • Our Business ¾ 13 locations in England and Wales, 10 with storage tanks ¾ Texaco’s largest independent dist
Slide 15: Overview – Garden Centres
Overview – Garden Centres • The Market ¾ Gardening and leisure enthusiasts ¾ Market has doubled since 1991 and is still growing ¾ Destination garden centres becoming dominant ¾ Players becoming more professional • Our Business ¾ Five large garden centres: Rivendell - Cheshire Wheatcroft - Nottingham
Slide 16: Ashton Park Garden Centre
Ashton Park Garden Centre nu 4 16
Slide 17: Share price - 5 years
Share price - 5 years 19050 19000 sso soo sso soo 70 yoo GHB NAV F Group PLO NWF Group PLC Volurmme (Hho wsand=) GB eiro pree GS Suing pree 2003 2004 2005 2006 2007
Slide 18: 10 year group growth
10 year group growth SALES PBT 350 6 300 5 250 * 4 200 £m 150 £m 3 100 2 50 1 0 0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 * Before exceptional disposal loss EPS DPS 50 20 45 18 40 16 35 14 30 12 p 25 p 10 20 8 15 6 10 4 5 2 0 1997 1998 1999
Slide 19: 10 years per business
10 years per business 2500 30000 Distribution 80000 Feeds 2000 V olum e 1800 70000 V o lu m es 25000 2000 1600 60000 1400 20000 1500 50000 1200 O p. P rofit O p . P ro fit Sales, £'000 15000 sales, £'000 1000 £'000 PBIT 40000 £'000 PBIT 1000 800 30000 10000 600 20000 500 400 5000 10000 200 0 0 0 0 1
Slide 20: Group strategy
Group strategy Continue organic and acquisitive growth within chosen markets: • Distribution ¾ Continued significant demand for services ¾ Build and fill new Wardle warehouses • Feeds ¾ Organic growth, increase market share ¾ Opportunities for consolidation and expansion • Fuels ¾ More business arou
Slide 21: Directors’ CV’s
Directors’ CV’s Mark Hudson – Chairman (age 60) Joined the board in 1985. Mark is an agricultural business adviser and dairy farmer. Past President of the CLA. Chair of Game Conservancy Trust. Council Member Duchy of Lancaster. Graham Scott – Chief Executive (age 62 ) Joined NWF in 1995 as CE. Previ