NWF Group PLC Trading Update and Notice of Results
RNS Number : 5706W
NWF Group PLC
12 December 2019
NWF Group plc
For release 7.00 a.m. 12 December 2019
NWF Group plc
NWF Group plc: Trading Update and Notice of Results
NWF Group plc ('NWF' or 'the Group'), the specialist distributor
of fuel, food and feed across the UK, today announces a trading
update for the half year ended 30 November 2019 and its notice of
half year results.
The Group expects that overall trading for the half year will be
ahead of prior year, with net debt as at 30 November 2019 in line
with the Board's expectations. The Board remains confident of
delivering its full year expectations.
Fuels - positive trading and two further acquisitions
-- Positive trading across the network with the benefit of prior
year acquisitions performing as planned. Investment continues in
systems and people to improve efficiencies and provide a strong
platform for continued growth.
-- In line with the strategy to acquire fuel businesses to
expand the geographical footprint and grow market share, the Group
is also pleased to announce two recent acquisitions completed since
the AGM on 26 September:
o Caldo Oils Limited ('Caldo'), a 5 million litre business in
the North West which has been integrated into the Wardle depot,
completed on 15 October 2019; and
o Ron Darch & Sons Co Ltd ('Darch'), a 35 million litre
distributor based in Yeovil in Somerset with two depots and a
complementary coal distribution business selling 5,000 tonnes per
annum, completed on 2 December 2019.
Food - positive trading momentum maintained alongside
significant new contract win:
-- The Food business has traded ahead of prior year with
increased storage and activity levels, in part as a consequence of
additional demand prior to 31 October. It continues to be
successful in winning new business.
-- The Group is pleased to announce a significant expansion of
the Food division on the back of a new five-year contract with a
major food customer. To support this contract and the continued
organic growth from a number of other customers, the Group has
signed a lease to operate an additional, newly constructed
240,000ft(2) warehouse in Crewe conveniently located close to the
M6 and to the main Wardle site. This warehouse will increase the
capacity of the Food division from 100,000 pallets to 137,000
pallets. The Board anticipates this new site will be fully
operational within six months.
Feeds - trading in line:
-- Demand continued to be robust across the first half with feed
volumes ahead of prior year, and trading both in line with
expectations and the same period last year. New business has been
won across the country and a training academy has been launched as
Financial impact of recent acquisitions and the expansion of
-- The acquisitions of Caldo and Darch are expected to add
around GBP0.5 million to Fuels' profitability in the current
-- The take on of the new Food contract and warehouse is
expected to be enhancing to divisional profitability in the Group's
next financial year ending May 2021, with initial start-up costs
impacting the current financial year by around GBP0.5 million.
-- These investments will increase net debt by approximately GBP7.0 million.
Richard Whiting, Chief Executive of NWF Group, said:
"We had a good first half and are trading in line with our
expectations. During the period, we continued the expansion of NWF
in line with our strategy; the two further Fuels acquisitions added
to the three previously announced, increasing our annualised
volumes by almost 30%. We are also significantly expanding the Food
division with a major new contract and warehouse. We remain
confident in our growth potential and prospects."
Notice of results
NWF will announce its half year results for the six months ended
30 November 2019 on Tuesday 28 January 2020.
A meeting will be held for analysts at 9.30 a.m. on the day of
the results announcement at MHP Communications, 6 Agar Street,
London, WC2N 4HN.
Market Abuse Regulation
Certain information contained in this announcement would have
constituted inside information (as defined by Article 7 of
Regulation (EU) No 596/2014) ("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.
Information for investors, including analyst consensus
forecasts, can be found on the Group's website at www.nwf.co.uk
Richard Whiting, Chief Reg Hoare / Patrick Mike Bell / Ed Allsopp
Chris Belsham, Group MHP Communications Peel Hunt LLP
NWF Group plc Tel: 020 3128 8100 (Nominated Adviser)
Tel: 01829 260 260 Tel: 020 7418 8900
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(END) Dow Jones Newswires
December 12, 2019 02:00 ET (07:00 GMT)
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