Slide 1: NWF Group plc Half Year Results to November 2021
NWF Group plc Half Year Results to November 2021
Slide 2: An experienced and capable team
NWF GROUP PLC Group overview Leadership team HALF YEAR RESULTS TO NOV 2021 2 An experienced and capable team Richard Whiting Chris Belsham Chief Executive Group Finance Director Key skills Experience Key skills Experience • Strategy and leadership Joined in 2007. Previously group • Finance Joined as
Slide 3: NWF is a specialist distributor of fuel, food and feed across the UK
NWF GROUP PLC Group overview Key highlights HALF YEAR RESULTS TO NOV 2021 3 NWF is a specialist distributor of fuel, food and feed across the UK Fuels Food Feeds Summary Supplying fuel to commercial The leading North West Delivering nutritional advice • Strong track record of and domestic customers
Slide 4: Strong results significantly ahead of prior year
NWF GROUP PLC Group overview Results summary HALF YEAR RESULTS TO NOV 2021 4 Strong results significantly ahead of prior year Revenue Headline operating profit1 Headline profit before tax1 £402.6m £4.7m £4.3m +30.1% +56.7% +72.0% 21 £402.6m 21 £4.7m 21 £4.3m 20 £309.4m 20 £3.0m 20 £2.5m Diluted head
Slide 5: Fuels: Strong performance across the expanding network
NWF GROUP PLC Fuels Operating highlights HALF YEAR RESULTS TO NOV 2021 5 Strong performance across the expanding network • Performance ahead of prior year and expectations with increased short-term demand from the Autumn oil shortage • Increased demand across the country – not due to retail sites wh
Slide 6: Food: Delivering on investment
NWF GROUP PLC Food Operating highlights HALF YEAR RESULTS TO NOV 2021 6 Delivering on investment • Significant performance improvement on prior year as anticipated • Total capacity now 135,000 pallet spaces • Business improvement delivered through efficiency gains • Stock in optimal locations • Full
Slide 7: Feeds: Performance below expectations
NWF GROUP PLC Feeds Operating highlights HALF YEAR RESULTS TO NOV 2021 7 Performance below expectations • Lower volumes in the South-West and the North • Challenged by significant commodity price increases (to an all-time high) and inflationary cost pressures • Impairment, principally goodwill recog
Slide 8: Financial review
Financial review
Slide 9: Income statement summary
NWF GROUP PLC Group overview Financial review HALF YEAR RESULTS TO NOV 2021 9 Income statement summary Nov 2021 £m Nov 2020 £m May 2021 £m • Revenue increased by £93.2 million (30.1%) Revenue • £18.5 million from higher activity levels, mix and increased sales prices Fuels 286.5 205.7 447.8 • £64.5
Slide 10: Income statement summary
NWF GROUP PLC Group overview Financial review HALF YEAR RESULTS TO NOV 2021 10 Income statement summary Nov 2021 Nov 2020 May 2021 £m £m £m Headline operating profit* 4.7 3.0 12.9 • Non-cash exceptional cost Exceptional items (8.4) (0.2) (0.5) • Feeds goodwill impairment of £7.9 million Amortisation
Slide 11: Balance sheet summary
NWF GROUP PLC Group overview Financial review HALF YEAR RESULTS TO NOV 2021 11 Balance sheet summary Nov 2021 Nov 2020 May 2021 £m £m £m • Fixed assets decreased due to Feeds Fixed assets 68.8 79.3 78.2 impairment and as depreciation exceeded capex Right of use assets 28.7 26.2 25.4 • Net working ca
Slide 12: Pension summary
NWF GROUP PLC Group overview Financial review HALF YEAR RESULTS TO NOV 2021 12 Pension summary Nov 2021 May 2021 16.0 £m £m 14.9 (1.1) 3.8 14.5 0.4 (3.5) 14.0 Assets 49.0 45.1 12.0 Liabilities (63.5) (60.0) 10.0 £m Deficit (14.5) (14.9) 8.0 6.0 Related deferred tax asset 3.6 3.7 4.0 Net pension liab
Slide 13: Cash flow summary
NWF GROUP PLC Group overview Financial review HALF YEAR RESULTS TO NOV 2021 13 Cash flow summary Nov 2021 £m Nov 2020 £m May 2021 £m • Headline EBITDA* of £7.1 million (H1 2021: £5.3 million) Operating (loss)/profit (3.8) 2.7 12.1 • Working capital movement reflects normal seasonal Impairment of int
Slide 14: Net debt summary
NWF GROUP PLC Group overview Financial review HALF YEAR RESULTS TO NOV 2021 14 Net debt summary • Facilities of £65 million with NatWest Group until 20.0 16.5 (27.4) October 2023 15.0 • Net debt of £7.4 million at Nov 2021 with 10.0 8.0 7.4 substantial facility and covenant headroom 5.0 2.5 (0.4) £'
Slide 15: A clear development strategy
NWF GROUP PLC Group overview Development strategy HALF YEAR RESULTS TO NOV 2021 15 A clear development strategy Summary Fuels Food Feeds • Diversified source of • Consolidate a highly • Optimise the customer mix • Utilise national operations earnings fragmented market platform • Optimise storage and
Slide 16: UK fuel market
NWF GROUP PLC Fuels Development strategy HALF YEAR RESULTS TO NOV 2021 16 UK fuel market • Fragmented market for oil distribution: UK fuel market (35 billion litres) • Top 10 players only 25%, over 150 small players • NWF No. 3 with 2% market share Certas (DCC) • Fuels market stable in the last 12 m
Slide 17: Acquisition activity
NWF GROUP PLC Fuels Development strategy HALF YEAR RESULTS TO NOV 2021 17 Acquisition activity • Activity since 2019: • Acquired five businesses across the UK • Over 150 million litres of business added • £14.4 million consideration paid • Clear post-acquisition integration plan • Retained the brand
Slide 18: Acquisition process
NWF GROUP PLC Fuels Development strategy HALF YEAR RESULTS TO NOV 2021 18 Acquisition process • Targeting oil distribution businesses in the UK • Clear valuation and pricing strategy • Effective transaction process • A range of ways to deliver value: • Integrate into existing depot infrastructure to
Slide 19: ESG framework: Delivering sustainable value
NWF GROUP Group PLC Group overview HALF YEAR NWF FinalRESULTS plc TOmay NOV2020 2021 19 ESG framework results to Delivering sustainable value Our sustainability framework consists of four strategic objectives that reflect our values and are designed to ensure we take a proactive and responsible appr
Slide 20: The NWF proposition
NWF GROUP PLC Group overview Summary and outlook HALF YEAR RESULTS TO NOV 2021 20 The NWF proposition Strong management Growth Asset backing Focus on return on Good cash Growing dividend team opportunities capital generation Solid track record Consolidate Strong balance Return on capital Typically g
Slide 21: Significant opportunity for growth
NWF GROUP PLC Group overview Summary and outlook HALF YEAR RESULTS TO NOV 2021 21 Significant opportunity for growth Strong result in first half – ahead of expectations and prior year • Fuels strong result from maintaining full supply across the country • Efficiency improvements delivered a signific
Slide 22: Q&A
NWF GROUP PLC Group overview HALF YEAR RESULTS TO NOV 2021 22 Q&A Richard Whiting Chris Belsham Chief Executive Group Finance Director
Slide 23: Appendix: Additional information
NWF GROUP PLC Group overview Appendix HALF YEAR RESULTS TO NOV 2021 23 Additional information • Analyst coverage and consensus forecasts • Business overview • Locations • Organisation • Main site photo • Group financial performance • Divisional track record • Additional market data
Slide 24: Analyst coverage and consensus forecasts
NWF GROUP PLC Group overview Analyst coverage and consensus forecasts HALF YEAR RESULTS TO NOV 2021 24 Actual Consensus forecasts Analysts 2021 2021 2022 2023 Peel Hunt* Charles Hall Revenue £675.6m £685.5m £703.8m £724.9m Panmure Adrian Gordon Kearsey Headline operating £12.9m £12.5m £12.1m £12.5m
Slide 25: Fuels business overview: Key figures
NWF GROUP PLC Fuels Business overview HALF YEAR RESULTS TO NOV 2021 25 Key figures NWF Fuels is a leading distributor of fuel oil and fuel cards delivering over 695 million litres across the UK to 127,000 customers. It is one of the largest authorised distributors of Texaco and is a major customer o
Slide 26: Food business overview: Key figures
NWF GROUP PLC Food Business overview HALF YEAR RESULTS TO NOV 2021 26 Key figures Boughey Distribution is a leading consolidator of ambient grocery products to UK supermarkets with over 1 million ft2 of warehousing and significant distribution assets. It works with over 200 customers including Arla,
Slide 27: Feeds business overview: Key figures
NWF GROUP PLC Feeds Business overview HALF YEAR RESULTS TO NOV 2021 27 Key figures NWF Agriculture has grown to be a leading national supplier of ruminant animal feed to 4,550 customers in the UK, feeding 1 in 6 dairy cows in Britain. It operates from sites in Cumbria, Lancashire, Cheshire and Devon
Slide 28: Business locations
NWF GROUP PLC Group overview Business locations HALF YEAR RESULTS TO NOV 2021 28 Feeds Aspatria Longtown Wardle* Wixland Food Crewe ** Wardle* Fuels Ammanford Babbinswood Crewe Bangor Boston Burnley Burwell Crewe ** Droitwich Dyserth Fishers Pond Great Yarmouth Halifax Home Counties Kenilworth Kirkb
Slide 29: Organisation
NWF GROUP PLC Group overview Organisation HALF YEAR RESULTS TO NOV 2021 29 Non-Executives Chief Executive Chair: Philip Acton Richard Whiting David Downie Richard Armitage Group Finance Company Director Secretary Chris Belsham Rob Andrew Fuels Food Feeds Richard Huxley Angela Carus Andrew Downie 335
Slide 30: Wardle – main operating site
NWF GROUP PLC Group overview Wardle – main operating site HALF YEAR RESULTS TO NOV 2021 30
Slide 31: Track record
NWF GROUP PLC Group overview Track record HALF YEAR RESULTS TO NOV 2021 31 Revenue Headline PBT 800 14 13.2 671.3 687.5 675.6 11.9 700 611.0 12 555.8 10.2 9.7 600 10 8.5 465.9 8.3 500 8 £m £m 400 6 300 200 4 100 2 0 0 2016 2017 2018 2019 2020 2021 2016 2017 2018 2019 2020 2021 Headline EPS Dividend
Slide 32: Divisional track record
NWF GROUP PLC Group overview Divisional track record HALF YEAR RESULTS TO NOV 2021 32 Fuels Food 500 60 3 450 10 50 2.5 400 8 Operating profit £m 350 Operating profit £m 40 2 Revenue £m Revenue £m 300 6 250 30 1.5 200 4 20 1 150 100 2 10 0.5 50 0 0 0 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 20
Slide 33: Fuels additional market data
NWF GROUP PLC Fuels Group overview HALF YEAR RESULTS TO NOV 2021 33 Fuels additional market data
Slide 34: Feeds additional market data
NWF GROUP PLC Feeds Group overview HALF YEAR RESULTS TO NOV 2021 34 Feeds additional market data GB market 2017 2018 2019 2020 2021 Milk (litres) 11.8bn 12.4bn 12.6bn 12.5bn 12.6bn UK dairy 1.9m 1.9m 1.9m 1.9m 1.9m herd Ruminant 4.8m 5.1m 5.1m 4.8m 5.0m feed market (tonnes) NWF 589k 589k 591k 625k 5