Business
NWF : Annual Report and Accounts 2023
NWF : Annual Report and Accounts
About this update from Nwf Group Plc
Skilled for growth NWF Group plc Annual Report and Accounts 2023 NWF Group is a specialist distributor of fuels, food and feeds across the UK. Our people are highly skilled and focused on delivering for our customers across all divisions. Skilled for growth Fuels Food Feeds Read more on page 10 Read more on page 14 Read more on page 18 Divisional highlights Fuels' resilient performance was delivered by meeting customers' needs through a period of continued significant price volatility and some localised shortages of fuels." Dave Walmsley Managing Director, Fuels Food delivered a strong performance improvement as a result of increased outloads and associated backhaul work, fully utilised warehouses throughout the year and improved efficiency levels." Angela Carus Managing Director, Food The outstanding performance improvement has been driven by farmers utilising nutritional advice to optimise diets and added value products to benefit from a record high milk price." Andrew Downie Managing Director, Feeds Financial highlights for the year ended 31 May 2023 Revenue Total dividend per share Diluted headline EPS1 £1,053.9m 7.8p 31.4p - +20.0% +4.0% 9.8% 23 1,053.9 23 7.8 23 31.4 22 878.6 22 7.5 22 34.8 21 675.6 21 7.2 21 20.4 Headline profit before tax¹ Headline operating profit¹ Net cash/(debt) 2 £19.6m £ - 21.0m £16.3m -6.2% 3.7% 23 19.6 23 21.0 23 16.3 22 20.9 22 21.8 22 9.0 21 11.9 21 12.9 (5.7) 21 Headline operating profit excludes exceptional items and amortisation of acquired intangibles. Headline profit before taxation excludes exceptional items, amortisation of acquired intangibles and the net finance cost in respect of the Group's defined benefit pension scheme. Diluted headline earnings per share also takes into account the taxation effect thereon. Net cash/(debt) excluding IFRS 16 lease liabilities. Overview Contents Overview 52 Board of Directors and Company Secretary IFC Divisional highlights 54 Senior management 1 Financial highlights 55 Corporate governance statement 2 At a glance 61 Audit Committee report 4 Chair's statement 64 Nomination Committee report Strategic report 66 Directors' remuneration report 70 Directors' report 6 Chief Executive's review 72 Statement of Directors' responsibilities 9 Divisional review Financial statements 10 Divisional review: Fuels 14 Divisional review: Food 73 Independent auditors' report 18 Divisional review: Feeds 78 Consolidated income statement 22 Business model 79 Consolidated statement of 24 Group financial review comprehensive income 80 Consolidated balance sheet 27 Principal risks and uncertainties 81 Consolidated statement ESG framework 82 of changes in equity 31 ESG Consolidated cash flow statement 43 Section 172 83 Notes to the Group financial statements 48 TCFD 113 Parent Company balance sheet 114 Parent Company statement of comprehensive income 114 Parent Company statement of changes in equity 115 Notes to the Parent Company financial statements Shareholder information 125 Notice of Annual General Meeting 126 Notes to the Notice of Annual General Meeting 128 Explanatory notes to the Notice of Annual General Meeting IBC Financial calendar IBC Divisional contacts IBC Advisors NWF GROUP PLC NWF.CO.UK 1 At a glance Specialist distribution across the UK What we do Fuels National depot network NWF Fuels is a leading distributor of fuel oil and fuel cards delivering over 636 million litres across the UK to 100,000 customers. Headline operating profit £12.9m -25.0% Read more on pages 10 to 13 Food Leading ambient consolidator Boughey Distribution is a leading consolidator of ambient grocery products to UK supermarkets with over 1,000,000ft² of warehousing and significant distribution assets. Headline operating profit £4.2m +50.0% Read more on pages 14 to 17 Feeds Focus on nutrition NWF Agriculture has grown to be a leading national supplier of ruminant animal feed to 4,132 customers in the UK, feeding one in six dairy cows in Britain. Headline operating profit £3.9m +116.7% Read more on pages 18 to 21 Our strategic objectives Ambitions and commitments by 2025 Create a culture of safety Invest in our people Read more on Respect the pages 31 to 42 environment Build strong partnerships Embed a behavioural safety approach to encourage positive open dialogue about safety in all our operations. Improve standards and policies, risk assessments and collaboration with our supply chain to maximise positive impacts for our stakeholders. Broaden our training and professional development programmes and wider employee wellness initiatives. Continue to invest in latest truck technology and fuel sources, and plan for renewable energy transition. 2 NWF GROUP PLC ANNUAL REPORT AND ACCOUNTS 2023 How we do it • Acquisitions and new l a N i t e p t a o c p d y e r n t a i a i i g v t t g n n c u c i a t d a s e r p r o h p l O f o Capital w allocations policy Maintenance capital Strong balance sheet Minimum 50% payout ratio dividend Overview developments • Additional dividend amounts • Share buy-backs • Appropriate bank debt v M a l a u x e i m o r i s g e a r n i e c t d u r e n v s a l n e d o p m e n t a c s s e c x E s h Investment case Strong management team Solid track record with ambition 7 Fuels acquisitions since 2019 Focus on returns Return on capital employed is a key metric 27.6% headline ROCE (2022: 30.3%) Growth opportunities Consolidate and optimise 1 clear strategy Good cash generation £32 million of cash generated from operating activities 107.6% cash conversion (2022: 97.7%) Asset backing Strong balance sheet £217.6m total assets (2022: 213.9m) Growing dividend Increased dividend for 11 consecutive years 7.8p total dividend per share (2022: 7.5p) NWF GROUP PLC NWF.CO.UK 3