Nwf Group Plc · LSE:NWF
Nwf — FY2007 Earnings Presentation
21 slides from Nwf's earnings presentation, May 2007
Slide 1: NWF Group plc 2006/07 Preliminary Results
NWF Group plc 2006/07 Preliminary Results Year to 31 May 2007
Slide 2: Group overview
Group overview • 52nd company to list on AIM in 1995 (founded in 1871) • 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
Slide 3: Main site: Wardle
Main site: Wardle • New warehouse build started June 2006, completion summer 2007 • Creating room for 60,000 pallets - predicted to be at full capacity May 08 3
Slide 4: Locations
Locations 4
Slide 5: Group organisation
Group organisation Chief Executive Non- Executive Directors Mark Hudson (Chairman), Graham Scott/ John Acornley, David Southworth Richard Whiting Paul Grundy Rob Andrew Finance Director Company Secretary Keith Forster David Warrington Kevin Kennerley Ian Barnes Managing Director Managing Director Ma
Slide 6: Operational highlights
Operational highlights • Distribution ¾ progressed warehouse building project (first use May 2007) ¾ acquired new customers • Feeds ¾ invested to improve quality and capacity in Wixland • Fuels ¾ acquired Browns of Burwell (Suffolk) (July 2006) • Garden Centres ¾ acquired AA Gent (garden centre site
Slide 7: Financial key points
Financial key points • turnover up 9% to £320m (£293m) • pre-tax profit before goodwill amortisation up 7% to £6.4m (£6.0m) • pre-tax profit after goodwill amortisation up 7% to £5.9m (£5.5m) • full year dividend per share up 8% to 19.4p (18.0p) • net assets inc. pension liability up 10% to £30.4m (
Slide 8: Profit and loss
Profit and loss Year ended Year ended May 2007 May 2006 Growth £'000 £'000 % Turnover Distribution 26,985 27,226 (0.9) Feeds 81,522 71,911 13.4 Fuels 190,402 178,151 6.9 Garden Centres 21,456 15,585 37.7 Total turnover 320,365 292,873 9.4 Operating profit Distribution 1,411 2,072 (31.9) Feeds 1,861
Slide 9: Balance sheet
Balance sheet May 2007 May 2006 Growth £'000 £'000 % Intangible assets 9,254 9,285 (0.3) Tangible assets 44,296 25,005 77.1 Stocks 8,063 7,094 13.7 Debtors 40,027 39,515 1.3 Cash and bank 66 945 (93.0) Creditors due within one year (47,547) (34,646) (37.2) Total assets less current liabilities 54,15
Slide 10: Cash flow
Cash flow Year ended Year ended May 2007 May 2006 Change £'000 £'000 £'000 Operating profit 7,051 6,722 329 Goodwill amortisation 545 468 77 Depreciation charge 3,091 2,728 363 Decrease/(increase) in working capital 1,504 (639) 2,143 Diff between pension charge and cash cont (49) (128) 79 Other (97)
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 138,000 pallets on three sites ¾ Old capacity full – new capac
Slide 12: 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 16% market share ¾ Capacity for 400,000 tonnes of pelleted feeds at Ward
Slide 13: 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 14: 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 Six large garden centres: Rivendell Cheshire Wheatcroft Nottingham Duke
Slide 15: Ashton Park Garden Centre
Ashton Park Garden Centre OS SS 16
Slide 16: Share price - 5 years
Share price - 5 years 1100 107 1000 2003 2004 2005 2006 GB AVF Group PLO NWF Group PLC Volume (Hho wszand=) GB reing pree G8 Siire pree 17
Slide 17: 10 year group growth
10 year group growth SALES PBT 350 7 300 6 250 5 * 200 £m 4 150 £m 3 100 2 50 1 0 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 * Before exceptional disposal loss EPS DPS 50 25 45 40 20 35 30 15 p 25 p 20 10 15 10 5 5 0 1998 1999 2000 2001 2002
Slide 18: 10 years per business
10 years per business 2500 30000 90000 2000 Distribution Feeds V olum e 80000 1800 V o lu m es 25000 2000 1600 70000 1400 20000 60000 1500 1200 Op. P rofit 50000 O p . P ro fit Sales, £'000 15000 sales, £'000 1000 £'000 PBIT £'000 PBIT 40000 1000 800 10000 30000 600 20000 500 400 5000 10000 200 0 0
Slide 19: Group strategy
Group strategy Continue organic and acquisitive growth within chosen markets: • Distribution ¾ Continued significant demand for services ¾ Complete and fill new Wardle warehouses • Feeds ¾ Organic growth, increase market share ¾ Opportunities for consolidation and expansion • Fuels ¾ More business a
Slide 20: Directors
Directors Mark Hudson – Chairman (age 60) 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. Graham Scott – Chief Executive (age 62 ) Joined NWF in 1995 as
Slide 21: NWF Group plc Preliminary Results
NWF Group plc Preliminary Results Year to 31 May 2007