Slide 1: NWF Group Results Presentation
NWF Group Results Presentation Half year results to 30 November 2024
Slide 2: A growth focused leadership team
Leadership team A growth focused leadership team Chris Belsham Katie Shortland Chief Executive Officer Chief Financial Officer Skills and experience Skills and experience • Joined the Group in April 2017 as CFO, appointed CEO March 2024 • Joined the Group in October 2023 • Considerable strategic and
Slide 3: NWF Group is a specialist distributor across the UK
Group overview NWF Group is a specialist distributor across the UK Connecting essential suppliers with their customers Growth drivers: Delivering: • Optimisation of commercial approach • Sustainable and increasing profitability • Improvement in operational efficiency • Strong return on capital emplo
Slide 4: A strong first half performance, in line with the Board's expectations
Results summary A strong first half performance, in line with the Board's expectations Revenue Headline operating profit¹ Headline profit before tax¹ £454.3m £5.0m £3.6m -3.9% +25.0% +5.9% 24 £454.3m 24 £5.0m 24 £3.6m 23 £472.9m 23 £4.0m 23 £3.4m Headline EBITDA¹ Net cash/(debt) Dividend per share £
Slide 5: Fuels operating highlights
Fuels Operating highlights Solid start to the year Revenue £312.8m Fuels -9.3% 24 312.8 23 344.8 Operating profit • Volumes slightly ahead of prior year with strong domestic heating oil demand in early £1.7m +142.9% autumn • Stable supply and low volatility in the 24 1.7 oil price • Brent Crude aver
Slide 6: Food operating highlights
Food Operating highlights Investing for growth Revenue £43.9m Food +11.1% 24 43.9 23 39.5 Operating profit • Revenue growth of 11.1% reflecting increased capacity with the opening of Lymedale £2.5m -13.8% • Storage volumes averaged 157,000 spaces (H1 2023: 135,000), peaked at 167,000 spaces 24 2.5 (
Slide 7: Feeds operating highlights
Feeds Operating highlights Good first half Revenue £97.6m Feeds +10.2% 24 97.6 23 88.6 Operating profit • Volumes 9.3% higher, outperforming market growth of 4.2% £0.8m +100.0% • Consistent margins and management of cost base 24 0.8 • Stable commodity prices - volatility range of 11% vs 10% in the c
Slide 8: Financial review
Financial review NWF Group plc Half Year results to 30 November 2024 8
Slide 9: Income statement summary
Financial review Income statement summary Nov 2024 Nov 2023 May 2024 • Revenue decreased by £m £m £m £18.6 million (3.9%): Revenue • £44.3 million decrease from lower commodity Fuels 312.8 344.8 677.8 prices and product mix movements Food 43.9 39.5 77.7 • £25.7 million increase from higher volumes F
Slide 10: Income statement summary
Financial review Income statement summary Nov 2024 Nov 2023 May 2024 • Headline PBT of £3.6 million £m £m £m • Bank interest of £0.2 million (H1 2023: £0.2 Operating profit 3.6 4.6 14.3 million) due to lower average debt levels Finance costs (1.5) (0.8) (2.1) offsetting higher interest rates Headlin
Slide 11: Balance sheet summary
Financial review Balance sheet summary Nov 2024 Nov 2023 May 2024 £m £m £m Fixed assets 82.2 76.9 82.3 • Fixed assets increased with the fit-out of Right of use assets 48.7 26.7 45.9 Lymedale Net working capital 6.3 4.4 5.7 • Net working capital change due to customer mix and timing of supplier paym
Slide 12: Pension summary
Financial review Pension summary Nov 2024 Nov 2023 May 2024 5.0 £m £m £m 4.5 1.3 4.5 Assets 33.4 31.2 32.9 Liabilities (37.1) (40.0) (37.4) 4.0 0.5 0.2 3.7 Deficit (3.7) (8.8) (4.5) 0.2 3.5 Related deferred tax asset 1.0 1.6 1.2 Net pension liability (2.7) (7.2) (3.3) 3.0 Discount rate 5.20% 5.25% 5
Slide 13: Cash flow summary
Financial review Cash flow summary Nov 2024 Nov 2023 May 2024 £m £m £m Operating profit 3.6 4.6 14.3 • Headline EBITDA* of £7.9 million (H1 2023: Depreciation – property, plant and equipment 2.8 2.5 5.0 £6.9 million) • Working capital movement driven by Depreciation – right of use assets 6.2 5.3 11.
Slide 14: Funding summary
Financial review Funding summary • Existing facilities of £61 million with additional accordion facilities of £20 million now extended with NatWest until May 2028 • Net cash of £11.4 million at Nov 2024 with substantial facility and covenant headroom Facility Drawn £m £m Facility Invoice discounting
Slide 15: Our strategy
Our strategy NWF Group plc Half Year results to 30 November 2024 15
Slide 16: NWF Group's Growth Strategy – Multiple Opportunities
Our strategy NWF Group’s Growth Strategy – Multiple Opportunities Innovators in Specialist Distribution Growth drivers: Delivering: • Optimisation of commercial approach • Sustainable and increasing profitability • Improvement in operational efficiency • Strong return on capital employed • Organic g
Slide 17: Strategic M&A: Fuels consolidation and energy transition opportunity
Strategic M&A Fuels consolidation opportunity Key Existing depot • Fragmented oil distribution market in the UK: New depots acquired • NWF number 3, with less than 5% market share in last 12 months • Clear proven acquisition process, 7 since 2019 deploying £26.0 million in total • Established integr
Slide 18: The Lymedale investment is now fully operational
Organic growth supported by capital investment The Lymedale investment is now fully operational • January 2024 a 15-year lease was signed with a 12-year break clause • First deliveries commenced April 2024 with warehouse fully operational in Autumn 2024 • Capital investment completed below plan of £
Slide 19: Feeds investment in product development
Optimisation of commercial approach Feeds investment in product development • A £750,000 investment has been made in a facility at our site in Cumbria, enhancing innovation and operational efficiency. • Strategic expansion with the launch of a new complementary product range, into the UK’s ‘Moist Fe
Slide 20: Positive first half and continued focus on growth
Summary and outlook Positive first half and continued focus on growth Strong first half performance • Year-on-year growth in headline operating profit and headline profit before tax • Good performances in Fuels and Feeds offsetting slower first half performance in Food • Positive cash generation res
Slide 21: Q&A
Q&A Chris Belsham Katie Shortland Chief Executive Officer Chief Financial Officer NWF Group plc Half Year results to 30 November 2024 21
Slide 22: Additional information
Additional information NWF Group plc Half Year results to 30 November 2024 22
Slide 23: Additional information
Appendix Additional information • Analyst coverage and consensus forecasts • Our purpose, vision and values • ESG framework • Business overview • Locations • Organisation • Main site photo • Group financial performance • Divisional track record • Additional market data NWF Group plc Half Year result
Slide 24: Analyst coverage and consensus forecasts
Analyst coverage and consensus forecasts Actual Consensus forecasts Analysts 2024 2025 2026 2027 Peel Hunt* Charles Hall Revenue £950.6m £1,005.9m £1,048.7m £1,101.5m Panmure Liberum Adrian Kearsey Headline operating profit £14.2m £15.9m £18.0m £18.4m Shore Capital Akhil Patel Headline profit before
Slide 25: Our purpose, vision and values
Our purpose, vision and values Our purpose, vision and values Purpose Connecting essential suppliers with their customers. Why we exist All three current Group businesses operate, and have core competencies, in specialist distribution markets. Our reason to exist is to add value to supply chains by
Slide 26: Delivering value sustainably
ESG framework Delivering value sustainably 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. Create Invest Build Respect a culture of safety in our people strong pa
Slide 27: Fuels business overview: key figures
Fuels Business overview Key figures NWF Fuels is a leading distributor of fuel oil and fuel cards delivering over 667 million litres across the UK to nearly 107,000 customers. Litres per annum Depots 667m +0.5% 27 No change People Tankers 302 -13.2% 153 -5.0% NWF Group plc Half Year results to 30 No
Slide 28: Food business overview: key figures
Food Business overview Key figures Boughey Distribution is a leading consolidator of ambient grocery products to UK supermarkets with over 1,400,000ft² of warehousing and significant distribution assets. It works with over 120 customers on a National footprint. Pallets stored Trucks 157,000 +16.3% 1
Slide 29: Feeds business overview: key figures
Feeds Business overview Key figures NWF Agriculture has grown to be a leading national supplier of ruminant animal feed to over 4,400 customers in the UK. It operates from sites in Cumbria, Cheshire and Devon. Tonnes Trucks 520,000 +3.8% 39 No change People Mills 257 +3.6% 3 No change NWF Group plc
Slide 30: Business locations
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 Great Yarmouth Home Counties Kenilworth Immingham Kirkby Lonsdale Long Marston Mansfield Preston
Slide 31: Track record
Track record Headline Operating Profit Headline PBT 25 25 21.8 21.0 20.9 19.6 20 20 14.3 14.2 15 12.9 15 13.2 11.9 12.5 £m £m 10.6 10.2 10.2 9.0 9.7 10 10 8.5 5 5 0 0 2017 2018 2019 2020 2021 2022 2023 2024 2017 2018 2019 2020 2021 2022 2023 2024 Headline EPS Dividend 40.0 9 35.0 8.1 7.8 35.0 8 7.5
Slide 32: Business track record
Business track record Key Operating profit Fuels Food Feeds 800 20 90 4.5 700 4.5 18 80 4 4 700 600 16 70 3.5 3.5 600 500 14 60 3 3 Operating profit £m Operating profit £m Operating profit £m 500 Revenue £m Total tonnes sold 12 Litres sold m 400 50 2.5 2.5 400 10 40 2 2 300 8 300 30 1.5 1.5 6 200 20
Slide 33: Oil price
Fuels Group overview Oil price NWF Group plc Half Year results to 30 November 2024 33
Slide 34: Feeds additional market data
Feeds Group overview Feeds additional market data Wheat price LIFFE 12-month period Farm gate milk price UK (pence per litre – ADHB) Soya bean meal price CBOT 12-month period GB market FY19 FY20 FY21 FY22 FY23 FY24 Milk (litres) 12.6bn 12.5bn 12.6bn 12.5bn 12.4bn 12.3bn UK dairy herd 1.9m 1.9m 1.9m
Slide 35: Thank you
MF group Thank you