Nwf Group Plc · LSE:NWF
Nwf — FY2021 Earnings Presentation
35 slides from Nwf's earnings presentation, Jul 30, 2021
Slide 1: NWF Group plc Final results to May 2021
NWF Group plc Final results to May 2021
Slide 2: An experienced and capable team
Group overview NWF GROUP PLC Leadership team FINAL RESULTS TO MAY 2021 2 An experienced and capable team Richard Whiting Chris Belsham Chief Executive Group Finance Director Key skills Experience Key skills • Strategy and leadership Joined in 2007. Previously group finance director • Finance Experie
Slide 3: NWF is a specialist distributor of fuel, food and feed across the UK
Group overview NWF GROUP PLC Key highlights FINAL RESULTS TO MAY 2021 3 NWF is a specialist distributor of fuel, food and feed across the UK Fuels Food Feeds Summary Supplying fuel to commercial and The leading North West ambient Delivering nutritional advice and • Strong track record of domestic cu
Slide 4: Strong results ahead of pre-pandemic market expectations
Group overview NWF GROUP PLC Results summary FINAL RESULTS TO MAY 2021 4 Strong results ahead of pre-pandemic market expectations Revenue Headline operating profit1 Headline profit before tax1 £675.6m £12.9m £11.9m -1.7% -9.8% -9.8% 21 £675.6m 21 £12.9m 21 £11.9m 20 £687.5m 20 £14.3m 20 £13.2m 19 £6
Slide 5: Fuels: Outperformance
Fuels NWF GROUP PLC Operating highlights FINAL RESULTS TO MAY 2021 5 Outperformance • Traded ahead of expectations supported by our commercial strategy, a cold winter and extended home working • Successful deployment of strategy to increase gas oil share of commercial business • Managed volatile and
Slide 6: Food: Successful investment
Food NWF GROUP PLC Operating highlights FINAL RESULTS TO MAY 2021 6 Successful investment • Business growth from new 240,000 ft² Crewe warehouse as planned • Total capacity now 135,000 pallet spaces • Year of two halves: • H1 volatility and inefficiency from Covid-19 stocking up and Brexit uncertain
Slide 7: Feeds: Focus on the future
Feeds NWF GROUP PLC Operating highlights FINAL RESULTS TO MAY 2021 7 Focus on the future • Focus on nutritional advice and dairy farmers • Lower volumes but greater % direct to farmers • Investment continued in NWF Academy training future nutritionists • Unprecedented increase in commodity prices at
Slide 8: Financial review
Financial review
Slide 9: Income statement summary
Group overview NWF GROUP PLC Financial review FINAL RESULTS TO MAY 2021 9 Income statement summary May 2021 May 2020 • Revenue decreased by £11.9 million (1.7%): £m £m • £32.0 million lower average oil price in Fuels Revenue • £9.2 million higher average commodity costs Fuels 447.8 470.2 in Feeds Fo
Slide 10: Income statement summary
Group overview NWF GROUP PLC Financial review FINAL RESULTS TO MAY 2021 10 Income statement summary May 2021 May 2020 • Headline PBT of £11.9 million £m £m Operating profit 12.1 13.5 • Bank interest reduced to £0.5 million Finance costs (1.3) (1.5) • IFRS 16 interest of £0.5 million (2020: £0.4 mill
Slide 11: Balance sheet summary
Group overview NWF GROUP PLC Financial review FINAL RESULTS TO MAY 2021 11 Balance sheet summary May 2021 May 2020 • Fixed assets decreased slightly as depreciation £m £m exceeded capex Fixed assets 78.2 79.9 • Lower net working capital due to some short- Right of use assets 25.4 27.3 term timing be
Slide 12: Pension summary
Group overview NWF GROUP PLC Financial review FINAL RESULTS TO MAY 2021 12 Pension summary May 2021 May 2020 25.0 £m £m 21.0 (2.8) Assets 45.1 40.1 20.0 0.6 (3.9) Liabilities (60.0) (61.1) (0.1) 0.1 14.9 15.0 Deficit (14.9) (21.0) £m Related deferred tax asset 3.7 4.0 10.0 Net pension liability (11.
Slide 13: Cash flow summary
Group overview NWF GROUP PLC Financial review FINAL RESULTS TO MAY 2021 13 Cash flow summary May 2021 £m May 2020 £m • Headline EBITDA* of £17.8 million (2020: £18.7 million) Operating profit 12.1 13.5 • Working capital movement as a result of short-term timing benefits on some supplier payments at
Slide 14: Net debt summary
Group overview NWF GROUP PLC Financial review FINAL RESULTS TO MAY 2021 14 Net debt summary 15.0 • Facilities of £65 million with NatWest until October 2023 12.3 (25.0) • Net debt of £5.7 million at May 2021 with substantial facility and 10.0 7.0 5.7 covenant headroom 5.0 0.0 1.1 (0.4) £m 2.9 Facili
Slide 15: A clear development strategy
Group overview NWF GROUP PLC Development strategy FINAL RESULTS TO MAY 2021 15 A clear development strategy Summary Fuels Food Feeds • Diversified source of earnings • Consolidate a highly fragmented • Optimise the customer mix • Consolidate the UK ruminant feed • Cash-generative businesses market •
Slide 16: UK fuel market
Fuels NWF GROUP PLC Development strategy FINAL RESULTS TO MAY 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 month
Slide 17: Acquisition activity
Fuels NWF GROUP PLC Development strategy FINAL RESULTS TO MAY 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 and
Slide 18: Acquisition process
Fuels NWF GROUP PLC Development strategy FINAL RESULTS TO MAY 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 rea
Slide 19: ESG framework: Delivering sustainable value
Group overview NWF GROUP NWF Group PLC plc FINAL FinalRESULTS TOmay MAY2020 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 approach
Slide 20: The NWF proposition
Group overview NWF GROUP PLC Summary and outlook FINAL RESULTS TO MAY 2021 20 The NWF proposition Strong management Growth opportunities Asset backing Focus on return on Good cash generation Growing dividend team capital Consolidate and optimise £8.3 million of cash Solid track record with ambition
Slide 21: Significant opportunity for growth
Group overview NWF GROUP PLC Summary and outlook FINAL RESULTS TO MAY 2021 21 Significant opportunity for growth Strong result in 2021 – outperforming pre-pandemic expectations • Delivered performance from investment in Food expansion • Fuels strong result from cold winter and home working • NWF aga
Slide 22: Q&A
Group overview NWF GROUP PLC FINAL RESULTS TO MAY 2021 22 Q&A Richard Whiting Chris Belsham Chief Executive Group Finance Director
Slide 23: Additional information
Group overview NWF GROUP PLC Appendix FINAL RESULTS TO MAY 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
Group overview NWF GROUP PLC Analyst coverage and consensus forecasts FINAL RESULTS TO MAY 2021 24 Actual Consensus forecasts Analysts 2021 2021 2022 2023 Peel Hunt* Charles Hall Revenue £675.6m £685.5m £703.8m £724.9m Panmure Gordon Adrian Kearsey Headline operating profit £12.9m £12.5m £12.1m £12.
Slide 25: Impact and response to cyber incident
Group overview NWF GROUP PLC Key highlights FINAL RESULTS TO MAY 2021 25 Impact and response to cyber incident Actions Immediate impact Financial impact Outcome • Cyber incident at end • No interruption to production or • No material impact to trading or • All key systems and reporting of October 20
Slide 26: Fuels key figures
Fuels NWF GROUP PLC Business overview FINAL RESULTS TO MAY 2021 26 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 of ot
Slide 27: Food key figures
Food NWF GROUP PLC Business overview FINAL RESULTS TO MAY 2021 27 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, Swi
Slide 28: Feeds key figures
Feeds NWF GROUP PLC Business overview FINAL RESULTS TO MAY 2021 28 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. 57
Slide 29: Business locations
Group overview NWF GROUP PLC Business locations FINAL RESULTS TO MAY 2021 29 Feeds Aspatria Longtown Wardle* Wixland Food Wardle* Fuels Ammanford Babbinswood Bangor Boston Burnley Burwell Droitwich Dyserth Fishers Pond Great Yarmouth Halifax Home Counties Kenilworth Kirkby Lonsdale Long Marston Mans
Slide 30: Organisation
Group overview NWF GROUP PLC Organisation FINAL RESULTS TO MAY 2021 30 Non-Executives Chief Executive Chairman: Philip Acton Richard Whiting David Downie Richard Armitage Group Finance Company Director Secretary Chris Belsham Rob Andrew Fuels Food Feeds Richard Huxley Keith Forster Andrew Downie 335
Slide 31: Wardle – main operating site
Group overview NWF GROUP PLC Wardle – main operating site FINAL RESULTS TO MAY 2021 31
Slide 32: Track record
Group overview NWF GROUP PLC Track record FINAL RESULTS TO MAY 2021 32 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 10 465.9 8.3 8.5 500 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 25 2
Slide 33: Divisional track record
Group overview NWF GROUP PLC Divisional track record FINAL RESULTS TO MAY 2021 33 Fuels Food 500 60 3 450 10 50 2.5 400 8 Operating profit £m 350 Operating profit £m 40 2 Revenue £m 300 Revenue £m 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 2017 2
Slide 34: Fuels additional market data
Fuels NWF GROUP PLC Group overview FINAL RESULTS TO MAY 2021 34 Fuels additional market data Oil prices - Brent Crude $ per barrel Oil Market Journal 75.0 70.0 65.0 60.0 55.0 50.0 45.0 40.0 $ 35.0 30.0 25.0 20.0 15.0 10.0 5.0 0.0 0 0 1 0 20 0 0 0 20 21 1 1 0 019 0 0 0 1 02 02 02 02 02 02 02 02 02 02
Slide 35: Feeds additional market data
Feeds Price per tonne $ Price per tonne £ 200.0 100.0 240.0 80.0 180.0 40.0 220.0 60.0 140.0 160.0 20.0 120.0 0.0 400.0 300.0 500.0 200.0 100.0 450.0 350.0 250.0 50.0 150.0 0.0 01/06/2020 6/1/2020 15/06/2020 6/15/2020 6/29/2020 29/06/2020 7/13/2020 13/07/2020 Group overview 7/27/2020 27/07/2020 8/10