Slide 1: NWF Group plc Half Year results to 30 November 2023
NWF Group plc Half Year results to 30 November 2023 NWF GROUP PLC
Slide 2: A refreshed leadership team with significant experience
Group overview Leadership team A refreshed leadership team with significant experience Chris Belsham Katie Shortland Chief Executive Designate Chief Financial Officer Skills and experience Skills and experience • Joined the Group in April 2017 as CFO • Joined the Group in October 2023 • Considerable
Slide 3: NWF is a specialist distributor operating in resilient niche segments
Group overview Key highlights NWF is a specialist distributor operating in resilient niche segments Summary Fuels Food Feeds Supplying fuel to Leading ambient grocery Delivering nutritional • Group operates in commercial and domestic consolidator advice and feed to specialist niche customers across
Slide 4: Results in line with expectations reflecting normalising market conditions
Group overview Results summary Results in line with expectations reflecting normalising market conditions Revenue Headline operating profit¹ Headline profit before tax¹ £472.9m £4.0m £3.4m -12.7% -41.2% -45.2% 23 £472.9m 23 £4.0m 23 £3.4m 22 £541.8m 22 £6.8m 22 £6.2m 21 £402.6m 21 £4.7m 21 £4.3m Dil
Slide 5: Fuels operating highlights
Fuels Operating highlights Fuels Volume growth and a less volatile pricing backdrop Revenue £344.8m • Volumes 9.3% ahead of prior year driven by commercial volumes and impact of acquisitions in last 12 months -14.2% 344.8 • Expected normalisation of margins as 23 supply conditions remained stable 22
Slide 6: Food operating highlights
Food Operating highlights Food Strong performance supports further significant expansion Revenue • High storage levels peaked at 141,000 £39.5m +9.7% pallets (exceeding current capacity of 23 39.5 135,000 pallets) 22 36.0 • Throughput 8.8% higher than prior year 21 31.3 driving revenue and profitabi
Slide 7: Feeds operating highlights
Feeds Operating highlights Feeds A resilient performance • Commodity prices low and stable – prior year H1 benefitted from highly volatile commodities and associated Revenue £88.6m -14.8% record milk price 23 88.6 • Good grazing conditions and a high 22 104.0 level of forage availability following 2
Slide 8: Financial review
Financial review NWF GROUP PLC HALF YEAR RESULTS TO 30 NOVEMBER 2023 8
Slide 9: Income statement summary
Group overview Financial review Income statement summary Nov 2023 Nov 2022 May 2023 £m £m £m Revenue • Revenue decreased by £68.9 million Fuels 344.8 401.8 757.2 (12.7%): Food 39.5 36.0 70.9 • £101.7 million from lower commodity prices Feeds 88.6 104.0 225.8 and product mix movements offset by Total
Slide 10: Income statement summary
Group overview Financial review Income statement summary Nov 2023 Nov 2022 May 2023 • Headline PBT of £3.4 million (H1 2022: £m £m £m £6.2 million) Operating profit 4.6 6.7 20.6 • Finance Costs remained flat at £0.8m Finance costs (0.8) (0.8) (1.7) which included: Headline profit before tax* 3.4 6.2
Slide 11: Balance sheet summary
Group overview Financial review Balance sheet summary Nov 2023 Nov 2022 May 2023 • Fixed assets increased with the £m £m £m acquisition of Geoff Boorman Fixed assets 76.9 66.6 75.5 • Lower net working capital from H1 22 Right of use assets 26.7 30.5 29.1 mainly due to reversal of large short-term Ne
Slide 12: Pension summary
Group overview Financial review Pension summary Nov 2023 Nov 2022 May 2023 £m £m £m Assets 31.2 33.3 29.6 Liabilities (40.0) (43.8) (39.2) Deficit (8.8) (10.5) (9.6) Related deferred tax asset 1.6 2.2 2.4 Net pension liability (7.2) (8.3) (7.2) Discount rate 5.25% 4.35% 5.35% Inflation rate (RPI) 3.
Slide 13: Cash flow summary
Group overview Financial review Cash flow summary Nov 2023 Nov 2022 May 2023 • Headline EBITDA* of £6.9 million (H1 £m £m £m 2022: £9.4 million) Operating profit 4.6 6.7 20.6 • Working capital in the financial year Depreciation and amortisation 8.1 7.5 15.3 impacted by product mix Profit on disposal
Slide 14: Net cash summary
Group overview Financial review Net cash summary 60 • Facilities of £61 million with NatWest until May 50 14.2 (5.6) (3.7) 2026 with additional accordion facilities of £20 (2.3) million 40 34.4 (3.1) (12.1) • Net cash of £13.3 million at November 2023 with £'m 30 0.5 (10.2) substantial facility and
Slide 15: A clear development strategy – a platform for growth
Group overview Development strategy A clear development strategy – a platform for growth Summary Fuels Food Feeds Supplying fuel to A leading UK ambient Delivering nutritional • Operates in specialist commercial and domestic grocery consolidator advice and feed to niche segments within customers acr
Slide 16: Targeted warehouse expansion
Food Development strategy Targeted warehouse expansion • Successful history of warehouse Lymedale facility Customer locations 2023 expansion to meet customer needs over last 60 years • Step change in 2020 with Crewe warehouse adding 240,000 ft2, 35,000 pallet spaces, exceeding planned returns • Lyme
Slide 17: The Lymedale investment should generate strong financial returns for the Group
Food Development strategy The Lymedale investment should generate strong financial returns for the Group • 15-year lease with 12-year break clause • Total investment of £8.5 million phased over FY24 and FY25 • Expected to deliver annualised operating profits of approximately £2.8 million • Impact of
Slide 18: Consolidation opportunity
Fuels Development strategy Consolidation opportunity Key Existing depot New depots • Fragmented oil distribution businesses in the UK: acquired since • NWF number 3, with less than 5% market share, over 150 smaller December 2022 players • Clear proven acquisition process, 7 since 2019 deploying £26.
Slide 19: Utilise national platform
Feeds Development strategy Utilise national platform NWF principal Feed Mills and Farming customers 2023 Feed Mill Farming customers • Optimally located, well invested mills in Cumbria, Cheshire and Devon • Capability to increase volumes from all facilities to meet customer needs and leverage the co
Slide 20: The NWF proposition
Group overview Summary and outlook The NWF proposition Focus on return Acquisition Management and on capital opportunities operational capability Return on capital employed Solid track record Growing to service is a key metric with ambition customer demand 22.7% 7 2 Group ROCE completed Fuels new wa
Slide 21: Expected normalisation and continued development
Group overview Summary and outlook Expected normalisation and continued development Strong performance in Food partly offsetting less supportive market conditions in Fuels and Feeds Food expansion continues with addition of Lymedale warehouse Excellent cash generation, a net cash position and long-t
Slide 22: Q&A
Group overview Q&A Chris Belsham Katie Shortland Chief Executive Designate Chief Financial Officer NWF GROUP PLC HALF YEAR RESULTS TO 30 NOVEMBER 2023 22
Slide 23: Appendix: Additional information
Group overview Appendix Additional information • Analyst coverage and consensus forecasts • ESG • Business overview • Locations • Organisation • Main site photo • Group financial performance • Divisional track record • Additional market data NWF GROUP PLC HALF YEAR RESULTS TO 30 NOVEMBER 2023 23
Slide 24: Analyst coverage and consensus forecasts
Group overview Analyst coverage and consensus forecasts Actual Consensus forecasts Analysts 2023 2024 2025 2026 Peel Hunt* Charles Hall Revenue £1,053.9m £967.7m £998.9m £1,024.9m Panmure Adrian Gordon Kearsey Headline operating £21.0m £14.5m £17.1m £19.3m Shore Capital Akhil Patel profit * Corporat
Slide 25: Delivering sustainable value
Group overview ESG framework 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 approach to the way we operate. Together with our stakeholders and across our three divi
Slide 26: Fuels key figures
Fuels Business overview Key figures NWF Fuels is a leading distributor of fuel oil and fuel cards delivering over 660 million litres across the UK to 100,000 customers. It is one of the largest authorised distributors of Texaco and is a major customer of other fuel suppliers including Shell and Jet.
Slide 27: Food key figures
Food Business overview Key figures Boughey Distribution is a leading consolidator of ambient grocery products to UK supermarkets with over 1,300,000ft² of warehousing and significant distribution assets. It works with over 130 customers including Arla and Typhoo. Pallets stored Trucks 135,000 144 Pe
Slide 28: Feeds key figures
Feeds Business overview Key figures NWF Agriculture has grown to be a leading national supplier of ruminant animal feed to over 4,000 customers in the UK, feeding 1 in 6 dairy cows in Britain. It operates from sites in Cumbria, Lancashire, Cheshire and Devon. Tonnes Trucks 501,000 39 People Mills 24
Slide 29: Business locations
Group overview Business locations Feeds Aspatria Longtown Wardle* Wixland Food Crewe Wardle* Lymedale Fuels Ammanford Babbinswood Bangor Boston Burnley Burwell Crewe* Droitwich Dyserth Edenbridge Faringdon Fishers Pond Glastonbury Great Yarmouth Home Counties Kenilworth Immingham Kirkby Lonsdale Lon
Slide 30: Organisation
Group overview Organisation Chief Executive Chief Financial Designate Officer Chris Belsham Katie Shortland Fuels Food Feeds Dave Walmsley Angela Carus Andrew Downie 348 employees 800 employees 248 employees Executive members of Group Board Chief Executive Group Executive leadership Richard Whiting
Slide 31: Wardle – main operating site
Group overview Wardle – main operating site NWF GROUP PLC HALF YEAR RESULTS TO 30 NOVEMBER 2023 31
Slide 32: Track record
Group overview Track record Revenue Headline PBT 1,200 25 1,053.9 20.9 1,000 19.6 878.6 20 800 671.3 687.5 675.6 611.0 15 13.2 555.8 11.9 600 £m £m 465.9 10.2 9.7 10 8.3 8.5 400 200 5 - 0 2016 2017 2018 2019 2020 2021 2022 2023 2016 2017 2018 2019 2020 2021 2022 2023 Headline EPS Dividend 40.0 9 35.
Slide 33: Business track record
Group overview Business track record Fuels Food 800.0 20 80 4.5 700.0 18 70 4 16 3.5 600.0 60 Operating profit £m 14 Operating profit £m 3 500.0 12 50 Revenue £m Revenue £m 2.5 400.0 10 40 2 300.0 8 30 1.5 6 200.0 20 1 4 100.0 2 10 0.5 0.0 0 0 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Slide 34: Fuels additional market data
Fuels Group overview Fuels additional market data Oil Prices - Brent crude $ per barrel Oil Market Journal 130 120 110 100 90 80 70 $ 60 50 40 30 20 10 - NWF GROUP PLC HALF YEAR RESULTS TO 30 NOVEMBER 2023 34
Slide 35: Feeds additional market data
Feeds Group overview Feeds additional market data Wheat Price LIFFE 6 month period Farm Gate Milk Price UK pence per litre (ADHB) 300 60 250 50 Price per tonne £ Price per litre £ 200 40 150 30 100 20 50 10 0 0 Soyabean Meal Price CBOT 6 month period GB market 2018 2019 2020 2021 2022 2023 500.00 Mi
Slide 36: Thank you
NWF GROUP PLC. Thank you