Slide 1: Preliminary Results Year to 31 May 2008
NWF Group plc Preliminary Results Year to 31 May 2008 1 NWF Group plc Preliminary Results Year to 31 May 2008 Distribution Feeds Fuels
Slide 2: Contents
NWF Group plc Preliminary Results Year to 31 May 2008 2 Contents Page Group overview 3 Operational highlights 4 Financial review 8 Market drivers and development opportunities 13 Summary 17 Appendices 18 Group organisation Group / divisional historical performance Business backgrounds Locations The
Slide 3: Group overview
NWF Group plc Preliminary Results Year to 31 May 2008 3 Group overview Transition year for the Group Turnover* up 20.8% to £361.2 million (2007: £298.9 million) Profit before tax* £4.2 million (2007: £5.8 million) Basic earnings per share* 6.0p (2007: 8.8p1) Full year dividend maintained at 3.9p War
Slide 4: Operational highlights - Distribution
NWF Group plc Preliminary Results Year to 31 May 2008 4 Operational highlights - Distribution £m 2007/8 2006/7 % Sales 32.9 27.0 +21.9 Operating profit 0.5 1.3 -61.5 Pallet spaces 100,000 72,000 +38.9 (year end) Completion of new Wardle warehouse development; 58,000 additional pallet spaces Won 25,0
Slide 5: Operational highlights - Feeds
NWF Group plc Preliminary Results Year to 31 May 2008 5 Operational highlights - Feeds £m 2007/8 2006/7 % Sales 100.1 81.5 +22.8 Operating profit 3.1 2.0 +55.0 Tonnes 517,000 512,000 +1.0 Record year in significantly volatile raw material markets (July 08 £ wheat / tonne: 112 195 148) Dairy farmers
Slide 6: Operational highlights - Fuels
NWF Group plc Preliminary Results Year to 31 May 2008 6 Operational highlights - Fuels £m 2007/8 2006/7 % Sales 228.2 190.4 +19.9 Operating profit 2.2 3.2 -31.3 Litres (million) 347 335 +3.6 Record high oil prices and significant volatility (Brent crude $67 / barrel $128 / barrel) Lower operating ma
Slide 7: Garden Centres (discontinued operations)
NWF Group plc Preliminary Results Year to 31 May 2008 7 Garden Centres (discontinued operations) £m 2007/8 2006/7 Profit after tax -0.3 0.2 Four key reasons for sale Focus on specialist distribution businesses & exit retail Historic low returns from the division High levels of capital required to in
Slide 8: Financial review – segmental income statement
NWF Group plc Preliminary Results Year to 31 May 2008 8 Financial review – segmental income statement May 2008 May 2007 Growth £m £m % Continuing operations Revenue Distribution 32.9 27.0 21.9% Feeds 100.1 81.5 22.8% Fuels 228.2 190.4 19.9% Total revenue 361.2 298.9 20.8% Operating profit Distributi
Slide 9: Financial review - income statement
NWF Group plc Preliminary Results Year to 31 May 2008 9 Financial review - income statement May 2008 May 2007 Growth £m £m % Continuing operations Revenue 361.2 298.9 20.8% Operating profit 5.8 6.5 -10.8% Finance costs (net) (1.6) (0.7) -128.6% Profit before tax 4.2 5.8 -27.6% Income tax expense (1.
Slide 10: Financial review – balance sheet summary
NWF Group plc Preliminary Results Year to 31 May 2008 10 Financial review – balance sheet summary May 2008 May 2007 £m £m Non current assets Property, plant and equipment 37.6 53.7 Intangible assets 5.5 10.1 Deferred tax asset 1.2 1.1 Current assets Inventories 4.6 8.1 Trade and other receivables 51
Slide 11: Financial review - cash flow summary
NWF Group plc Preliminary Results Year to 31 May 2008 11 Financial review - cash flow summary May 2008 May 2007 Change £m £m £m Cashflows from operating activities Operating profit 6.8 8.1 (1.3) Depreciation of property, plant and equipment 3.7 3.4 0.3 Amortisation of intangible assets 0.3 0.1 0.2 I
Slide 12: Financial review - IFRS impact summary
NWF Group plc Preliminary Results Year to 31 May 2008 12 Financial review - IFRS impact summary Year ended 31 May 2008 IFRS UK GAAP £m £m Income Statement - continuing operations Revenue 361.2 361.2 No change Operating profit 5.8 5.4 Up 7.4% Profit before tax 4.2 3.8 Up 10.5% Balance Sheet Net asset
Slide 13: Distribution – our business
NWF Group plc Preliminary Results Year to 31 May 2008 13 Distribution – our business Consolidation of ambient grocery products Imported Groceries UK Manufacturers Backloads Backloads Supermarkets Supermarket distribution centres Cash and Carry
Slide 14: Distribution Market drivers and development opportunities
NWF Group plc Preliminary Results Year to 31 May 2008 14 Distribution Market drivers and development opportunities UK Produced Ambient Grocery Market Imported Ambient Grocery Market Boughey UK pallets 45,000 Boughey imported pallets 55,000 Total UK pallets 1,160,000 Total imported pallets 2,000,000
Slide 15: Feeds Market drivers and development opportunities
NWF Group plc Preliminary Results Year to 31 May 2008 15 Feeds Market drivers and development opportunities 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
Slide 16: Fuels Market drivers and development opportunities
NWF Group plc Preliminary Results Year to 31 May 2008 16 Fuels Market drivers and development opportunities UK Fuel Market 25.2 billion litres UK Fuel Market - NWF 1.4% share DCC Energy Texaco Equity Burning oil Total Butler Gas oil Watson Diesel NWF Fuels Petrol Pace Bayford Others Market volumes s
Slide 17: Summary
NWF Group plc Preliminary Results Year to 31 May 2008 17 Summary Transition year for Group Turnover* up 20.8% to £361.2 million (2007: £298.9 million) Profit before tax* £4.2 million (2007: £5.8 million) Basic earnings per share* 6.0p (2007: 8.8p1) Full year dividend maintained at 3.9p Wardle £19 mi
Slide 18: Appendices
NWF Group plc Preliminary Results Year to 31 May 2008 18 Appendices Group organisation Group / divisional historical performance Business backgrounds Locations The Board
Slide 19: Group organisation
NWF Group plc Preliminary Results Year to 31 May 2008 19 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 Dire
Slide 20: Group performance (continuing operations)
NWF Group plc Preliminary Results Year to 31 May 2008 20 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
Slide 21: Divisional performance
NWF Group plc Preliminary Results Year to 31 May 2008 21 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
Slide 22: Business background - Distribution
NWF Group plc Preliminary Results Year to 31 May 2008 22 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 117,000 pallet
Slide 23: Business background - Feeds
NWF Group plc Preliminary Results Year to 31 May 2008 23 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 Capaci
Slide 24: Business background - Fuels
NWF Group plc Preliminary Results Year to 31 May 2008 24 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 o
Slide 25: Business background – Garden Centres
NWF Group plc Preliminary Results Year to 31 May 2008 25 Business background – Garden Centres Market Gardening and leisure enthusiasts Market has doubled since 1991 Destination garden centres becoming dominant Market consolidating Our business Six large destination garden centres: Rivendell, Cheshir
Slide 26: Locations
NWF Group plc Preliminary Results Year to 31 May 2008 26 Locations
Slide 27: The Board
NWF Group plc Preliminary Results Year to 31 May 2008 27 The Board Mark Hudson – Chairman (age 61) 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. Richar