NWF Group PLC Trading Update and Renewed Banking facilities (1715C)
June 09 2023 - 1:00AM
UK Regulatory
TIDMNWF
RNS Number : 1715C
NWF Group PLC
09 June 2023
NWF Group plc: Trading Update and Renewed Banking facilities
NWF Group plc ('NWF' the 'Company' or the 'Group'), the
specialist distributor of fuel, food and feed across the UK , today
provides a trading update for the year ended 31 May 2023 ("FY23"),
together with details of its renewed banking facilities.
Trading update
As set out in the trading update of 9 March 2023, the Group
delivered strong performances from all businesses in the first
half. Pleasingly, this positive momentum has been sustained through
the second half and consequently, FY23 headline profit before tax
is now anticipated to be ahead of the current market expectation(1)
and in excess of GBP19.0 million(2) .
Net cash at the year-end is also higher than previous
expectations as a result of the stronger trading result, ongoing
disciplined cash management across the Group and some positive
working capital movements.
Fuels:
-- Volumes recovered in the second half as the team focused on increasing commercial business
-- The Sweetfuels acquisition has been successfully integrated and is performing strongly
-- The Board continues appraising earnings accretive acquisition
opportunities in line with NWF's strategy of consolidating a
fragmented UK Fuels market
Food:
-- Demand has continued to be robust with storage close to
capacity and increased outloads supported by improved operating
efficiency
Feeds
-- Solid demand for ruminant feed and ancillary products across
the year supported by a strong milk price with the business
effectively managing commodity cost volatility and inflationary
cost increases
Renewed Banking facilities
The Group has completed the renewal of its banking facilities
with NatWest Group for a three year term on competitive rates, with
an option to extend by two years. The facilities of GBP61 million
comprise an invoice discounting facility of GBP50 million, a
revolving credit facility of GBP10 million and an overdraft of GBP1
million, with a further GBP20 million accordion available to
support the development strategy of the Group.
Richard Whiting, Chief Executive of NWF said:
"We have delivered a very strong result for the Group and it's
great to report that all three divisions have performed ahead of
expectations in spite of the inflationary and cost of living
challenges. The Group is well positioned with a net cash position
and new banking facilities to further develop and grow."
1. Company compiled consensus headline PBT of GBP17.5 million;
information for investors including analyst
consensus forecasts, can be found on the Group's website at www.nwf.co.uk
2. Stated before amortisation of acquired intangibles and the
net finance cost of the Group's defined benefit scheme
Certain information contained in this announcement would have
constituted inside information (as defined by Article 7 of
Regulation (EU) No 596/2014), as it forms part of domestic law by
virtue of the European Union (Withdrawal) Act 2018) ("MAR") prior
to its release as part of this announcement and is disclosed in
accordance with the Company's obligations under Article 17 of those
Regulations.
Richard Whiting, Chief Reg Hoare / Catherine
Executive Chapman Mike Bell / Ed Allsopp
Chris Belsham, Group Finance
Director / Christian Harte
NWF Group plc MHP Communications Peel Hunt LLP
(Nominated Adviser
and broker)
Tel: 01829 260 260 Tel: 020 3128 8339 Tel: 020 7418 8900
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END
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