Business
NWF : Full Year Results 2023
NWF : Full Year Results
About this update from Nwf Group Plc
NWF Group plc Final results to 31 May 2023 NWF GROUP PLC Group overview Leadership team An experienced and capable team - succession planned Richard Whiting Chief Executive Succession Retiring from NWF (aged 60) in March 2024 Fifteen-year tenure at NWF Group plc as Chief Executive delivering a significant sustained increase in returns for shareholders Skills and experience Considerable leadership and strategic experience in a number of manufacturing and specialist distribution businesses in the building products and consumer products sectors Significant experience at board level with over seventeen years' experience in fully listed and AIM businesses Broad experience including CFO of a FTSE Small Cap listed business and operating at a senior level in sales and marketing roles in a FTSE 100 building products group Chris Belsham Chief Executive designate Succession In line with the Board succession plans, will be appointed CEO in March 2024 Skills and experience Considerable strategic and leadership experience at both NWF Group and as Head of Corporate Finance and Equity Partner at Irwin Mitchell LLP Extensive M&A, valuation and financing expertise across a range of sectors following fourteen years as a corporate finance adviser with KPMG with a focus on listed clients Qualified Chartered Accountant and Fellow of the Institute of Chartered Accountants for England and Wales having qualified with PwC in 1999 Katie Shortland joins as CFO in October 2023 Experienced finance and business leader in infrastructure, engineering and manufacturing (Midland Expressway, Meggitt plc and Rolls Royce plc) NWF GROUP PLC 2 FINAL RESULTS TO 31 MAY 2023 Group overview Key highlights NWF is a specialist distributor of fuel, food and feed across the UK Summary • Strong track record of delivering increased shareholder returns • Group operates in large stable markets Fuels Food Feeds Supplying fuel to The leading North West Delivering nutritional commercial and domestic ambient grocery advice and feed to customers across the UK consolidator ruminant farmers across the UK • Strongly cash generative with dividend growth • Clear growth strategy • Surpassed £1 billion revenue for the first time • Focus on delivering the skills for our workforce Third largest oil distributor in the UK 636 million litres delivered in 2023 Road diesel, gas oil, heating oil and petrol 27 depots across the UK 155 tankers delivering fuel 100,000 customers, both commercial and domestic Seven acquisitions since 2019 in a fragmented market Boughey Distribution is a leading consolidator of ambient grocery products Over 1 million ft 2 of modern, racked warehousing in Cheshire 122,000 pallet spaces utilised 144 trucks and 320 trailers 131 contracted ambient grocery customers Second largest national ruminant feed supplier - feeds one in six dairy cows Feed mills in Cumbria, Cheshire and Devon 514,000 tonnes sold in 2023 4,132 farming customers 39 trucks and 17 trailers Primarily dairy, also beef and sheep NWF GROUP PLC 3 FINAL RESULTS TO 31 MAY 2023 Group overview Results summary Strong results, significantly ahead of initial market expectations * Revenue Headline operating profit¹ £1,053.9m £21.0m +20.0% -3.7% 23 £1,053.9m 23 22 £878.6m 22 21 £675.6m 21 £12.9m Headline EBITDA¹ Net cash/(debt) £25.8m £16.3m -3.0% 23 £25.8m 23 22 £26.6m 22 £9.0m 21 £17.8m 21 £(5.7)m Headline profit before tax¹ £19.6m -6.2% £21.0m 23 £19.6m £21.8m 22 £20.9m 21 £11.9m Dividend per share 7.8p +4.0% £16.3m 23 7.8p 22 7.5p 21 7.2p * Analyst consensus headline PBT at the start of the year was £11.9 million. 1 Stated before exceptional items, amortisation of acquired intangibles and the net finance cost of the Group's defined benefit pension scheme and the tax effect thereon where relevant. NWF GROUP PLC 4 FINAL RESULTS TO 31 MAY 2023 Fuels Operating highlights Fuels Resilient performance Very resilient performance in tough market conditions Oil supply issues in the autumn/winter period: UK removed Russian sourced oil Trunked oil across the country, benefitting from national supply agreements Mild winter: lower demand for heating oil and consumers reduced usage in the cost-of-living crisis Managed highly volatile oil costs over the period: Brent Crude moved from $124 per barrel to $74 per barrel Heating Oil Platts price fell from 98p per litre to 46p per litre Heating oil remained a lower cost source of home heating throughout 2023 Two acquisitions in the last 12 months in Oxfordshire and Kent adding 39 million litres per annum Revenue £757.2m +21.9% 23 757.2 621.1 447.8 Operating profit £12.9m -25.0% 23 12.9 17.2 9.3 Volume (litres) 636.0m -4.1% 23 636 22 663 21 695 NWF GROUP PLC 5 FINAL RESULTS TO 31 MAY 2023