Nwf Group Plc · LSE:NWF
Nwf — FY2014 Earnings Presentation
24 slides from Nwf's earnings presentation, August 2014
Slide 1: Preliminary Results to 31 May 2014
PRELIMINARY RESULTS TO 31 MAY 2014
Slide 2: Group overview: Key highlights
Group overview NWF Group plc PRELIMINARY RESULTS TO Key highlights 31 May 2014 » Results ahead of market expectations » Delivering on strategy with S.C. Feeds acquisition » Delivered by management actions in all three » Effective cash management reducing underlying net debt divisons » New long term
Slide 3: Operational highlights: Feeds
Operational highlights NWF Group plc PRELIMINARY RESULTS TO Feeds 31 May 2014 » Increased volumes and market share » Return on investment in sales and marketing » Market demand for feed lower than prior year » Farm profitability improving » Commodities volatile and now lower » Focus on nutritional p
Slide 4: Operational highlights: Food
Operational highlights NWF Group plc PRELIMINARY RESULTS TO Food 31 May 2014 » Very strong turnaround in a difficult market » Successful delivery of self-help » Relocated all customers to Wardle and exited Deeside » Long term customer contracts underpin volumes » Increased operating efficiencies » M
Slide 5: Operational highlights: Fuels
Operational highlights NWF Group plc PRELIMINARY RESULTS TO Fuels 31 May 2014 » Warm winter and spring conditions » Reduction in market demand for heating oil » Oil prices reasonably stable » New gas oil and heating oil product lines » Strong gas oil sales through focused initiatives » Continued foc
Slide 6: Financial Review: Income statement summary
Financial Review NWF Group plc PRELIMINARY RESULTS TO Income statement summary 31 May 2014 May 2014 May 2013 Growth £m £m % Revenue Food 36.4 36.4 0.0% Feeds 160.7 153.1 5.0% Fuels 340.6 356.3 (4.4%) Total revenue 537.7 545.8 (1.5%) Operating profit Food 2.0 1.2 66.7% Feeds 3.3 3.8 (13.2%) Fuels 3.2
Slide 7: Financial Review: Balance sheet summary
Financial Review NWF Group plc PRELIMINARY RESULTS TO Balance sheet summary 31 May 2014 May 2014 May 2013 Variance £m £m £m Fixed assets 54.0 48.8 5.2 Net working capital 9.8 9.2 0.6 Assets employed 63.8 58.0 5.8 Pension deficit (17.3) (18.8) 1.5 Net debt (11.7) (9.2) (2.5) Tax provisions (1.8) (1.8
Slide 8: Financial Review: Net debt summary
Financial Review NWF Group plc PRELIMINARY RESULTS TO Net debt summary 31 May 2014 » Debt Summary » Committed facilities of £65.0m with RBS until October 2019 18.0 » In addition £8m of HP finance is available Movement in Net Debt 16.0 Facility Facility Drawn 14.0 Invoice Discounting £50.0m £11.6m 6.
Slide 9: Financial Review: Cash flow summary
Financial Review NWF Group plc PRELIMINARY RESULTS TO Cash flow summary 31 May 2014 May 2014 May 2013 £m £m Cashflows from operating activities Operating profit 8.5 9.4 Depreciation and amortisation 3.7 3.6 Working capital 1.1 0.4 Other (0.7) (0.8) Operating cash flow 12.6 12.6 Interest paid (0.7) (
Slide 10: Development strategy: Feeds
Development strategy NWF Group plc PRELIMINARY RESULTS TO Feeds 31 May 2014 » Agriculture an attractive market for the Group » Population growth » Relationships with 4,300 farmers » Trusted adviser to farmers » Offer includes advice and technical support » No.2 in ruminant and growing » S.C. Feeds a
Slide 11: Development strategy: Food
Development strategy NWF Group plc PRELIMINARY RESULTS TO Food 31 May 2014 » Market for ambient groceries challenging but stable » Working with blue chip brands and retailers » Key value proposition » High service levels » Low cost and efficient » Boughey a major regional presence » Wardle full and
Slide 12: Development strategy: Fuels
Development Strategy NWF Group plc PRELIMINARY RESULTS TO Fuels 31 May 2014 » Third largest oil distributor in the UK » Low cost depot focused operating model » Network built by acquisition » Strong track record » Low ROS, high ROCE > 20% Development strategy » Driving for business balance » Investi
Slide 13: Group overview: Summary & outlook
Group overview NWF Group plc PRELIMINARY RESULTS TO Summary & outlook 31 May 2014 » Successful year for the Group » Ahead of expectations on profit and cash » Progressive dividend reflects confidence in the future » Experienced operational management across the Group » Capability to outperform marke
Slide 14: Group overview: Additional information
Group overview NWF Group plc PRELIMINARY RESULTS TO Additional information 31 May 2014 » Business backgrounds » Locations » Organisation » Main site photo » Five year financial performance » Ten year divisional track record » Additional market data 14
Slide 15: Business background: Feeds
Business background NWF Group plc PRELIMINARY RESULTS TO Feeds 31 May 2014 Supply of feed to ruminants in the UK – principally dairy » National player – feeds one in six dairy cows in the UK, number two in the market » 580,000 tonnes per annum » Feed dairy, beef and sheep » Sell added value products
Slide 16: Business background: Food
Business background NWF Group plc PRELIMINARY RESULTS TO Food 31 May 2014 Consolidation of ambient grocery products to UK supermarkets » 100,000 pallet spaces » 800,000ft2 of warehousing in Wardle » Market leader in the North West » 417 people » 100 trucks, 233 trailers » 99.7% service level » 200 c
Slide 17: Business background: Fuels
Business background NWF Group plc PRELIMINARY RESULTS TO Fuels 31 May 2014 Supply of fuels and fuel cards to commercial, domestic and retail customers across the UK » Third largest oil distributor in the UK » 57,000 customers » 191 people » 17 depots across the UK » Supply 52 retail petrol stations
Slide 18: Group overview: Locations
Group overview NWF Group plc PRELIMINARY RESULTS TO Locations 31 May 2014 Feeds Dumfries Wardle* Stone Wixland Food Wardle* Fuels Acle Ammanford Babbinswood Bangor Boston Burnley Burwell Droitwich Dyserth Kenilworth Kingsbury Long Marston No@ngham Southampton Stoke Wardle* Yate 18
Slide 19: Group overview: Organisation
Group overview NWF Group plc PRELIMINARY RESULTS TO Organisation 31 May 2014 Chief Executive Non-Executive Directors Richard Whi0ng Mark Hudson (Chairman) Yvonne Monaghan Philip Acton Finance Director Company Secretary Brendon Banner Rob Andrew Food Feeds Fuels 417 employees 171 employees 191 employ
Slide 20: Group overview: Wardle main site
Group overview NWF Group plc PRELIMINARY RESULTS TO Wardle main site 31 May 2014 20
Slide 21: Group Overview: Five year financial performance
Group Overview NWF Group plc PRELIMINARY RESULTS TO Five year financial performance 31 May 2014 Revenue EPS 600 14 500 12 10 400 £m 8 p 300 6 200 4 100 2 0 0 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 Headline PBT 6 DPS 9 8 5 7 6 4 5 £m p3 4 3 2 2 1 1 0 0 2010 2011 2012 2013 2014 2010 2011 20
Slide 22: Group Overview: Divisional track record
Group Overview NWF Group plc PRELIMINARY RESULTS TO Divisional track record 31 May 2014 Feeds 180 Food 50 3.5 4.0 160 45 3.5 3.0 140 40 3.0 2.5 120 35 Operating profit £m Operating profit £m Revenue £m 2.5 Revenue £m 100 30 2.0 2.0 25 80 1.5 1.5 20 60 15 1.0 40 1.0 10 20 0.5 0.5 5 0 0.0 0 0.0 2005 2
Slide 23: Group overview: Fuels additional market data
$ 0 10 20 30 40 50 60 70 80 90 100 110 120 130 03/06/2013 17/06/2013 01/07/2013 15/07/2013 29/07/2013 Group overview 12/08/2013 26/08/2013 09/09/2013 23/09/2013 07/10/2013 21/10/2013 04/11/2013 Fuels additional market data 18/11/2013 02/12/2013 Oil Market Journal 16/12/2013 30/12/2013 Oil Prices - B
Slide 24: Group overview: Feeds commodity prices
Price&per&tonne&$& Price&per&tonne&£& 03 /0 0" 10" 20" 30" 40" 50" 60" 70" 80" 90" 100" 110" 120" 130" 140" 150" 160" 170" 180" 190" 200" 200# 250# 300# 350# 400# 450# 500# 550# 600# 6/ 17 201 /0 3 03/06/2013" 6/ # 01 201 /0 3 15/06/2013" 7/ # 15 201 /0 3 27/06/2013" 7/ # 29 201 /0 3 09/07/2013" 7/