NWF Group PLC Trading Statement (5048V)
December 14 2021 - 12:59AM
UK Regulatory
TIDMNWF
RNS Number : 5048V
NWF Group PLC
14 December 2021
For release 7.00am Tuesday 14 December 2021
NWF Group plc
NWF Group plc: Trading Update & Chair Succession
NWF Group plc ('NWF' or the Group), the specialist distributor
of fuel, food and feed across the UK, today provides a trading
update for the half year ended 30 November 2021 (the "Period"),
together with the announcement of the proposed Chair succession
process.
Trading update
The Board is pleased to report that trading in the latter part
of the Period remained strong, with underlying trends in the
Group's markets being consistent through the half. As a result, NWF
expects to report underlying results for the first half which will
be significantly ahead of the prior year, demonstrating a return on
recent investments and the continued resilience of the Group. This
strong first half performance provides a solid platform for the
business entering the seasonally important third quarter and
consequently the Board remains confident of delivering its full
year expectations.
Fuels:
-- A strong performance, which was ahead of expectations and the
prior year comparative period. The division saw a short-term
benefit arising from increased demand related to the fuel shortages
in the Autumn, with the Group maintaining continuity of supply at
all depots across the country. NWF experienced no supply shortages
during this period and has a full complement of drivers to meet
demand.
-- The Board continues to appraise earnings enhancing
acquisition opportunities in line with the strategy of
consolidating a fragmented UK Fuels market.
Food:
-- Performed well ahead of the prior year, as the business
benefitted from its enlarged capacity, experiencing strong demand
through the Period, as well as enhanced efficiency with stock in
optimum locations.
-- There remains some near term volatility in market conditions,
as customers experience difficulties in manufacturing and importing
ambient groceries and supermarkets have increased stock levels as a
consequence of concerns around driver availability and supply chain
issues.
Feeds:
-- A disappointing performance, behind prior year as a result of
lower volumes, significant commodity price and cost inflation and
the challenges of passing this though to customers in the short
term.
-- In the latter part of the Period, price increases were
implemented to cover the inflationary pressures and there has been
an element of volume recovery, albeit still lower than prior
year.
Net debt at the half year was materially lower than prior year
as a result of the stronger trading result, together with ongoing
disciplined cash management across the Group. This provides the
business with significant capacity to support its investment driven
growth strategy.
Chair succession process
In line with NWF's governance policy, current Non-Executive
Chair of the Group, Philip Acton will be stepping down from the
Board at the time of the 2022 AGM, in September, having completed
nine years' service with NWF. David Downie, currently Senior
Independent Non-Executive Director will be appointed as Chair at
that time. The process to recruit an additional Non-Executive
Director will commence shortly, with an appointment to be made
ahead of the 2022 AGM.
Richard Whiting, Chief Executive of NWF said:
"We have delivered a very strong first half performance, despite
volatile market demand and significant inflationary pressures. The
Group has been able to retain labour and drivers, ensuring we have
continued to service our customers' needs. Both Fuels and Food have
delivered significant year on year growth in the first half, more
than offsetting a weaker Feeds result and we enter our seasonally
busier second half with good momentum. We continue to focus on the
long-term growth of the Group, with a clear strategy which is
supported by a very strong financial position."
Information for investors, including analyst consensus
forecasts, can be found on the Group's website at www.nwf.co.uk
Richard Whiting, Chief
Executive Reg Hoare / James Bavister Mike Bell / Ed Allsopp
Chris Belsham, Group Finance
Director
NWF Group plc MHP Communications Peel Hunt LLP
(Nominated Advisor)
Tel: 01829 260 260 Tel: 020 3128 8591 Tel: 020 7418 8900
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