TIDMNWF
RNS Number : 0724B
NWF Group PLC
28 January 2020
NWF Group plc
28 January 2020
NWF Group plc
NWF Group plc: Half Year results for the period ended 30
November 2019
NWF Group plc ('NWF' or the Group), the specialist distributor
of fuel, food and feed across the UK, today announces its half year
results for the period ended 30 November 2019.
Financial highlights H1 2019 H1 2018 %
------------------------------- ------------ ------------ ---------
Revenue GBP348.9m GBP330.5m +5.6%
Headline operating profit(1
2) GBP3.5m GBP2.6m +34.6%
Headline profit before
taxation(1 2) GBP3.0m GBP2.4m +25.0%
Fully diluted headline
earnings per share(1) 5.1p 3.8p +34.2%
Interim dividend per share 1.0p 1.0p -
Net debt (excl. IFRS 16
lease liabilities) GBP14.9m GBP14.8m +0.7%
Net debt to EBITDA (excl.
IFRS 16 lease liabilities) 1.0x 1.0x -
Net debt (incl. IFRS 16 GBP33.5m
lease liabilities)
Statutory results
Operating profit(2) GBP3.1m GBP2.3m +34.8%
Profit before taxation(2) GBP2.4m GBP1.9m +26.3%
Fully diluted earnings
per share 4.0p 2.8p +42.9%
1 Headline operating profit excludes exceptional items (see note
4) 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.
2 Results for H1 2019 are presented following the adoption of
IFRS 16 'Leases', the impact of which is to increase operating
profit and headline operating profit by GBP0.1 million. Profit
before taxation and headline profit before taxation are reduced by
GBP0.1 million with the inclusion of GBP0.2 million of finance
costs under the new standard. The Group has elected to apply the
simplified transition approach and as such comparative periods have
not been restated.
Group highlights:
-- Revenue growth with increased activity levels in all divisions.
-- Two Fuels acquisitions completed during the period in line
with our strategy, with one further acquisition completed post
period end, adding 115 million litres per annum in aggregate.
-- New 240,000 ft(2) warehouse secured which will significantly
expand the Food division, to support continued organic growth and a
new five year contract with a major Food customer.
-- Board's full year trading expectations remain unchanged.
Divisional highlights:
-- Fuels - headline operating profit of GBP1.4 million (H1 2018:
GBP0.9 million). Increased underlying sales of gas oil and heating
oil together with a positive contribution from acquisitions.
-- Food - headline operating profit of GBP1.4 million (H1 2018:
GBP1.0 million). Continued profit improvement from operational
efficiencies. Post period end, a new five year contract has been
signed with a major customer and a new warehouse to support
anticipated growth.
-- Feeds - headline operating profit of GBP0.7 million (H1 2018:
GBP0.7 million). Gained market share with volume growth against a
backdrop of lower market volumes. Profit has been maintained
despite lower commodity prices.
Richard Whiting, Chief Executive, NWF Group plc, commented:
"We had a very positive first half, with all divisions trading
in line with, or exceeding, expectations. We have continued the
expansion of NWF in line with our strategy; acquiring five fuel
businesses in the last 12 months, increasing our annualised volumes
by almost 30%. We are also significantly expanding the Food
division with a major new contract and warehouse, which is expected
to benefit our next financial year. Current trading is in line with
the Board's expectations for the full financial year."
To view a short video of the results presentation please follow
this link: http://bit.ly/NWF_H1_Jan20
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 / Mike Bell /
Executive Patrick Hanrahan Ed Allsop
Chris Belsham, Group MHP Communications Peel Hunt LLP (Nominated advisor)
Finance Director Tel: 020 3128 Tel:0 020 7418 8900
NWF Group plc 8100
Tel: 01829 260 260
CHAIRMAN'S STATEMENT
NWF has performed strongly in the first half with growth in each
of the three divisions, further acquisitions completed in line with
our strategy within Fuels and the announcement of a major customer
contract supporting a significant expansion of the Food division.
Fuels delivered ahead of expectations with increased sales of gas
oil and heating oil supported by the acquisitions which performed
as planned. The acquisition in December 2019 of Darch in the South
West, our fifth in the last twelve months, cumulatively increases
our annualised fuel volumes by almost 30% in line with our strategy
to expand our geographic footprint and grow market share. Food has
increased profits through the delivery of further operational
efficiencies and effective management of the increased activity
levels experienced across the market prior to 31 October in
anticipation of Brexit. Feeds has gained market share and increased
volumes in a weaker market, delivering more volume direct to farms,
to merchants and to other compounders in the first half.
Results
Revenue for the half year ended 30 November 2019 was 5.6% higher
at GBP348.9 million (H1 2018: GBP330.5 million) as a result of
increased activity levels in all three divisions offsetting lower
commodity prices in Fuels and Feeds. Headline operating profit(1)
was higher at GBP3.5 million (H1 2018: GBP2.6 million), benefiting
from increases in Fuels and Food. Headline profit before
taxation(1) was up 25.0% to GBP3.0 million (H1 2018: GBP2.4
million).
The results for the half year ended 30 November 2019 are
presented following the adoption of IFRS 16 'Leases' on 1 June
2019. This results in an incremental benefit of GBP0.1 million on
headline operating profit and gives rise to an additional finance
cost of GBP0.2 million arising from application of the new
standard. The net impact for the Group on headline profit before
tax is therefore an additional cost of GBP0.1 million.
Headline basic earnings per share(1) was 5.1p (H1 2018: 3.8p)
and headline diluted earnings per share(1) was 5.1p (H1 2018:
3.8p).
Net cash generated by operations for the period amounted to
GBP8.6 million (H1 2018: net cash absorbed of GBP4.9 million). Cash
generation was strong with lower commodity prices in particular
delivering working capital benefits in Feeds.
Net capital expenditure in the period was GBP2.3 million (H1
2018: GBP1.3 million) in line with our plans. Net consideration on
acquisitions in the period was GBP3.2 million (H1 2018:
GBPNil).
Net debt at the period end, excluding the impact of IFRS 16, was
GBP14.9 million (H1 2018: GBP14.8 million) and net debt to EBITDA
remained the same at 1.0x (H1 2018: 1.0x). The Group's banking
facilities of GBP65.0 million are committed to October 2023 and NWF
continues to operate with substantial headroom. Net debt including
the impact of IFRS 16 was GBP33.5 million.
Net assets at 30 November 2019 increased to GBP48.8 million (30
November 2018: GBP46.9 million). The IAS 19R defined benefits
pension scheme valuation deficit has reduced from GBP17.3 million,
as at 31 May 2019, to GBP17.0 million at the half year.
1 Headline operating profit excludes exceptional items (see note
4) 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.
Dividend
The Board has approved an interim dividend per share of 1.0p (H1
2018: 1.0p). This will be paid on 6 May 2020 to shareholders on the
register as at 20 March 2020. The shares will trade ex-dividend on
19 March 2020. The Group has a progressive dividend policy and has
increased the annual dividend by approximately 5% in each of the
last five years.
Operations
Fuels
Revenue increased by 10.6% to GBP245.9 million (H1 2018:
GBP222.4 million) as a result of increased volumes both in the
underlying business and as a result of acquisitions, which more
than offset a lower oil price in the period. Headline operating
profit was GBP1.4 million (H1 2018: GBP0.9 million) benefiting from
improved product mix and volume growth.
Volumes increased by 19.4% to 314 million litres (H1 2018: 263
million litres) with increased sales of gas oil and heating oil,
both on an underlying basis and as a consequence of acquisition
activity, partly owing to more mixed weather conditions and as a
result of targeted sales activity. Brent Crude fell during the
first half to an average of $61.87 per barrel (H1 2018: $75.11 per
barrel) and ended the reporting period at $62.43 per barrel.
In line with our strategy we have completed three acquisitions
since the start of our new financial year. Ribble (completed July
2019) and Caldo (completed October 2019) in the North West and
Darch (completed December 2019) in the South West, announced after
the period end. Five acquisitions have now been completed in the
last twelve months adding almost 30% to the annualised volumes of
the Fuels division. Investment is continuing in systems and people
to improve efficiencies and provide a strong platform for continued
growth.
Food
Revenue increased by 2.5% to GBP24.4 million (H1 2018: GBP23.8
million). Headline operating profit was GBP1.4 million (H1 2018:
GBP1.0 million).
Storage volumes increased to an average of 106,000 pallet spaces
(H1 2018: 96,000). This significant increase was driven by new
customer wins and an increase in stock holding prior to 31 October
as a number of customers held stock in advance of a potential
Brexit date. Whilst this extra stock then shipped during November
and December, the business continues to utilise its overflow
warehousing. Activity measured by pallets despatched was 4% higher
than during the prior year comparative period.
The Palletline operation performed as planned and we have
expanded our e-fulfilment operations with seven customers now
utilising this added value facility.
A significant expansion of the Food division is planned 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 its 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
Revenue decreased by 6.8% to GBP78.6 million (H1 2018: GBP84.3
million) as a result of lower commodity prices more than offsetting
the increased feed volumes in the period. A basket of tracked
commodities was over 16% lower in the first half compared to the
same period last year. Headline operating profit was stable at
GBP0.7 million (H1 2018: GBP0.7 million).
Volumes were 6.5% higher at 297,000 tonnes (H1 2018: 279,000
tonnes) as market share gains were made across the country.
Additional business was delivered in direct sales to farmers, to
feed merchants and with supplies to other UK compounders. The feed
market was 10.8% lower than the first half last year when
additional feed was utilised by farmers to offset the long dry
summer and lack of forage.
The market experienced deflationary pressures during the period
with lower commodity prices being passed through to farmers. Whilst
average milk prices across the period were consistent at just under
29p per litre, the latest November milk price is almost 2p per
litre lower than prior year which is causing farmers some concerns.
Average milk prices at the end of November were 29.7p per litre
(November 2018: 31.6p per litre).
Our operational platform, with key mills close to customers in
the North, Central and Southern regions, delivered the expected
efficiencies and provides an effective base for future development.
NWF's training academy has been launched as planned to train our
future nutritionists.
Financial impact of recent growth initiatives:
-- The acquisitions of Caldo and Darch are expected to add
around GBP0.5 million to Fuels profitability in the current
financial year.
-- 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 result in an increase to net debt
(excluding IFRS 16 lease liabilities) of approximately GBP7.0
million.
Board
Yvonne Monaghan, currently Non-Executive Director of NWF and
Chair of the Audit Committee, has informed the Board of her wish to
step down at this year's AGM to be held in September 2020 after
seven years' service. Yvonne has been a highly valued member of the
Board and has been of great support to me as Chairman. A
replacement will be sought in due course.
Outlook and future prospects
Following the strong first half, the Group has continued to
perform as planned since the period end. In Fuels, demand for
heating oil increased as expected, with post-acquisition
integration commencing at Darch in the South West. In Food,
activity levels were a little lower in December as the last Brexit
stock was delivered and planning is underway to optimise the
utilisation of the new 240,000 ft(2) warehouse in Crewe. In Feeds,
volumes have remained very strong and there have been increases in
commodity prices since the period end.
Our financial position is strong and we continue to focus on
growth initiatives, both organic and through targeted
acquisitions.
Overall the Group continues to trade in line with the Board's
expectations for the full financial year and I look forward to
updating shareholders later this year.
Philip Acton
Chairman
28 January 2020
Condensed consolidated income statement
for the half year ended 30 November 2019 (unaudited)
Half year Half year Year
ended ended ended
30 November 30 November 31 May
2019 2018 2019
Note GBPm GBPm GBPm
------------------------------------ ------- ------------- ------------- --------
Revenue 3 348.9 330.5 671.3
Cost of sales and administrative
expenses (345.8) (328.2) (661.7)
------------------------------------ ------- ------------- ------------- --------
Headline operating profit(1) 3.5 2.6 10.2
Exceptional items 4 (0.3) (0.3) (0.5)
Amortisation of acquired
intangibles (0.1) - (0.1)
------------------------------------ ------- ------------- ------------- --------
Operating profit(3) 3 3.1 2.3 9.6
Finance costs 5 (0.7) (0.4) (0.9)
------------------------------------ ------- ------------- ------------- --------
Headline profit before taxation(1) 3.0 2.4 9.7
Exceptional items 4 (0.3) (0.3) (0.5)
Amortisation of acquired
intangibles (0.1) - (0.1)
Net finance cost in respect
of the defined benefit pension
scheme (0.2) (0.2) (0.4)
Profit before taxation(3) 2.4 1.9 8.7
Income tax expense(2) 6 (0.5) (0.5) (1.9)
------------------------------------ ------- ------------- ------------- --------
Profit for the period attributable
to equity shareholders 1.9 1.4 6.8
------------------------------------ ------- ------------- ------------- --------
Earnings per share (pence)
Basic 7 4.0 2.8 13.9
Diluted 7 4.0 2.8 13.9
------------------------------------ ------- ------------- ------------- --------
Headline earnings per share
(pence)(1)
Basic 7 5.1 3.8 15.8
Diluted 7 5.1 3.8 15.8
------------------------------------ ------- ------------- ------------- --------
1 Headline operating profit is statutory operating profit of
GBP3.1 million (H1 2018: GBP2.3 million) before exceptional items
of GBP0.3 million (H1 2018: GBP0.3 million) and amortisation of
acquired intangibles of GBP0.1 million (H1 2018: GBPNil). Headline
profit before taxation is statutory profit before taxation of
GBP2.4 million (H1 2018: GBP1.9 million), after adding back the net
finance cost in respect of the Group's defined benefit pension
scheme of GBP0.2 million (H1 2018: GBP0.2 million), the exceptional
items and the amortisation of acquired intangibles. Headline
earnings per share also takes into account the taxation effect
thereon.
2 Taxation on exceptional items in the current period has
reduced the charge by GBPNil (H1 2018: GBPNil).
3 During the half year to 30 November 2019, the application of
IFRS 16 resulted in an increase in operating profit in the
consolidated income statement of GBP0.1 million in comparison to
treatment under IAS 17, as operating lease payments under IAS 17
were replaced by a depreciation charge on right of use assets.
Profit before taxation reduced by GBP0.1 million with the inclusion
of GBP0.2 million of finance costs under the new standard.
Condensed consolidated statement of comprehensive income
for the half year ended 30 November 2019 (unaudited)
Half year Half year Year
ended ended ended
30 November 30 November 31 May
2019 2018 2019
GBPm GBPm GBPm
--------------------------------------- ------------- ------------- --------
Profit for the period attributable
to equity shareholders 1.9 1.4 6.8
Items that will never be reclassified
to profit or loss:
Re-measurement (loss)/gain on
the defined benefit pension scheme (0.3) 1.5 (1.2)
Tax on items that will never be
reclassified to profit or loss 0.1 (0.3) 0.2
--------------------------------------- ------------- ------------- --------
Total comprehensive income for
the period 1.7 2.6 5.8
--------------------------------------- ------------- ------------- --------
The notes form an integral part of this condensed consolidated
Half Year Report.
Condensed consolidated balance sheet
as at 30 November 2019 (unaudited)
30 November 30 November 31 May
2019 2018 2019
Note GBPm GBPm GBPm
---------------------------------- ----- ------------ ------------ --------
Non-current assets
Property, plant and equipment 45.9 44.8 45.5
Right of use assets 2 19.5 - -
Intangible assets 28.3 22.1 24.7
Deferred income tax assets 2.9 2.8 3.1
---------------------------------- ----- ------------ ------------ --------
96.6 69.7 73.3
---------------------------------- ----- ------------ ------------ --------
Current assets
Inventories 5.7 5.3 5.6
Trade and other receivables 79.4 80.0 67.2
Current income tax asset 0.2 - -
Cash and cash equivalents 1.8 1.0 2.8
Derivative financial instruments 8 0.2 0.2 0.2
---------------------------------- ----- ------------ ------------ --------
87.3 86.5 75.8
---------------------------------- ----- ------------ ------------ --------
Total assets 183.9 156.2 149.1
---------------------------------- ----- ------------ ------------ --------
Current liabilities
Trade and other payables (79.2) (74.1) (66.7)
Current income tax liabilities - (0.4) (1.1)
Borrowings 8 - - (0.2)
Lease liabilities 2,8 (3.0) - -
(82.2) (74.5) (68.0)
---------------------------------- ----- ------------ ------------ --------
Non-current liabilities
Borrowings 8 (16.2) (15.8) (13.0)
Lease liabilities 2,8 (16.1) - -
Deferred income tax liabilities (3.6) (3.5) (3.7)
Retirement benefit obligations (17.0) (15.4) (17.3)
Provisions - (0.1) -
---------------------------------- ----- ------------ ------------ --------
(52.9) (34.8) (34.0)
---------------------------------- ----- ------------ ------------ --------
Total liabilities (135.1) (109.3) (102.0)
---------------------------------- ----- ------------ ------------ --------
Net assets 48.8 46.9 47.1
---------------------------------- ----- ------------ ------------ --------
Equity
Share capital 9 12.2 12.2 12.2
Share premium 0.9 0.9 0.9
Retained earnings 35.7 33.8 34.0
---------------------------------- ----- ------------ ------------ --------
Total equity 48.8 46.9 47.1
---------------------------------- ----- ------------ ------------ --------
The notes form an integral part of this condensed consolidated
Half Year Report.
Condensed consolidated statement of changes in equity
for the half year ended 30 November 2019 (unaudited)
Share Share Retained Total
capital premium earnings equity
GBPm GBPm GBPm GBPm
---------------------------------------------- --------- --------- ---------- --------
Balance at 1 June 2018 12.2 0.9 31.3 44.4
---------------------------------------------- --------- --------- ---------- --------
Profit for the period - - 1.4 1.4
Items that will never be reclassified
to profit or loss:
Re-measurement gain on the defined
benefit pension scheme - - 1.5 1.5
Tax on items that will never be reclassified
to profit or loss - - (0.3) (0.3)
---------------------------------------------- --------- --------- ---------- --------
Total comprehensive income for the
period - - 2.6 2.6
---------------------------------------------- --------- --------- ---------- --------
Transactions with owners:
Issue of shares - - - -
Value of employee services - - (0.1) (0.1)
---------------------------------------------- --------- --------- ---------- --------
- - (0.1) (0.1)
---------------------------------------------- --------- --------- ---------- --------
Balance at 30 November 2018 12.2 0.9 33.8 46.9
---------------------------------------------- --------- --------- ---------- --------
Profit for the period - - 5.4 5.4
Items that will never be reclassified
to profit or loss:
Re-measurement loss on the defined
benefit pension scheme - - (2.7) (2.7)
Tax on items that will never be reclassified
to profit or loss - - 0.5 0.5
---------------------------------------------- --------- --------- ---------- --------
Total comprehensive income for the
period - - 3.2 3.2
---------------------------------------------- --------- --------- ---------- --------
Transactions with owners:
Dividend paid - - (3.1) (3.1)
Issue of shares - - - -
Value of employee services - - 0.1 0.1
---------------------------------------------- --------- --------- ---------- --------
- - (3.0) (3.0)
---------------------------------------------- --------- --------- ---------- --------
Balance at 31 May 2019 12.2 0.9 34.0 47.1
---------------------------------------------- --------- --------- ---------- --------
Profit for the period - - 1.9 1.9
Items that will never be reclassified
to profit or loss:
Re-measurement loss on the defined
benefit pension scheme - - (0.3) (0.3)
Tax on items that will never be reclassified
to profit or loss - - 0.1 0.1
---------------------------------------------- --------- --------- ---------- --------
Total comprehensive income for the
period - - 1.7 1.7
---------------------------------------------- --------- --------- ---------- --------
Transactions with owners:
Issue of shares - - - -
Value of employee services - - - -
---------------------------------------------- --------- --------- ---------- --------
- - - -
---------------------------------------------- --------- --------- ---------- --------
Balance at 30 November 2019 12.2 0.9 35.7 48.8
---------------------------------------------- --------- --------- ---------- --------
The notes form an integral part of this condensed consolidated
Half Year Report.
Condensed consolidated cash flow statement
for the half year ended 30 November 2019 (unaudited)
Half year Half year Year
ended ended ended
30 November 30 November 31 May
2019 2018 2019
GBPm GBPm GBPm
------------------------------------------------ ------------- ------------- --------
Cash flows from operating activities
Operating profit 3.1 2.6 9.6
Adjustments for:
Depreciation and amortisation 4.6 2.3 4.7
Contributions to pension scheme not recognised
in income statement (0.8) (0.8) (1.4)
Other - (0.1) (0.1)
------------------------------------------------ ------------- ------------- --------
Operating cash flows before movements
in working capital 6.9 4.0 12.8
Movements in working capital:
Decrease in inventories 0.3 0.4 0.3
Increase in receivables (4.8) (15.9) (0.9)
Increase/(decrease) in payables 6.2 6.6 (3.3)
Utilisation of provision - - (0.1)
------------------------------------------------ ------------- ------------- --------
Net cash generated from/(absorbed by)
operations 8.6 (4.9) 8.8
Interest paid (0.5) (0.2) (0.5)
Income tax paid (1.7) (1.1) (1.9)
------------------------------------------------ ------------- ------------- --------
Net cash generated from/(absorbed by)
operating activities 6.4 (6.2) 6.4
------------------------------------------------ ------------- ------------- --------
Cash flows from investing activities
Purchase of intangible assets (0.2) (0.1) (0.2)
Purchase of property, plant and equipment (2.3) (1.3) (2.8)
Acquisition of subsidiaries - cash paid
(net of cash acquired) (3.2) - (3.5)
Payment of contingent consideration - (0.8) (0.8)
Proceeds on sale of property, plant and
equipment 0.2 - 0.2
Net cash absorbed by investing activities (5.5) (2.2) (7.1)
------------------------------------------------ ------------- ------------- --------
Cash flows from financing activities
Increase in bank borrowings 0.6 9.0 6.2
Capital element of leases (2.5) (0.1) (0.1)
Dividends paid - - (3.1)
------------------------------------------------ ------------- ------------- --------
Net cash (absorbed by)/generated from
financing activities (1.9) 8.9 3.0
------------------------------------------------ ------------- ------------- --------
Net movement in cash and cash equivalents (1.0) 0.5 2.3
Cash and cash equivalents at beginning
of period 2.8 0.5 0.5
------------------------------------------------ ------------- ------------- --------
Cash and cash equivalents at end of period 1.8 1.0 2.8
------------------------------------------------ ------------- ------------- --------
The notes form an integral part of this condensed consolidated
Half Year Report.
Notes to the condensed consolidated half year report
for the half year ended 30 November 2019 (unaudited)
1. General information
NWF Group plc ('the Company') is a public limited company
incorporated and domiciled in England, United Kingdom, under the
Companies Act 2006. The address of its registered office is NWF
Group plc, Wardle, Nantwich, Cheshire CW5 6BP.
The Company has its primary listing on AIM, part of the London
Stock Exchange.
These condensed consolidated interim financial statements
('interim financial statements') were approved by the Board for
issue on 28 January 2020.
These interim financial statements do not constitute statutory
accounts within the meaning of Section 434 of the Companies Act
2006. The interim financial statements for the half years ended 30
November 2019 and 30 November 2018 are neither audited nor reviewed
by the Company's auditors. Statutory accounts for the year ended 31
May 2019 were approved by the Board of Directors on 30 July 2019
and delivered to the Registrar of Companies. The report of the
auditors on those accounts was unqualified, did not contain an
emphasis of matter paragraph and did not contain any statement
under Section 498 of the Companies Act 2006.
2. Basis of preparation and accounting policies
Except as described below, these interim financial statements
have been prepared in accordance with the principal accounting
policies used in the Group's consolidated financial statements for
the year ended 31 May 2019. These interim financial statements
should be read in conjunction with those consolidated financial
statements, which have been prepared in accordance with
International Financial Reporting Standards ('IFRS') as endorsed by
the European Union.
These interim financial statements do not fully comply with IAS
34 'Interim Financial Reporting', as is currently permissible under
the rules of AIM.
Taxes on income in the interim periods are accrued using the tax
rate that would be applicable to expected total annual
earnings.
The triennial actuarial valuation of the Group's defined benefit
pension scheme was completed in the half year ended 30 November
2017, with a deficit of GBP19.1 million at the valuation date of 31
December 2016. In these interim financial statements, this
liability has been updated in order to derive the IAS 19R valuation
as of 30 November 2019. The triennial valuation resulted in Group
contributions of GBP2.1 million per annum, including recovery plan
payments of GBP1.8 million per annum for 11 years from 1 January
2018.
The Directors consider that headline operating profit, headline
profit before taxation and headline earnings per share measures,
referred to in these interim financial statements, provide useful
information for shareholders on underlying trends and performance.
Headline profit before taxation is reported profit before taxation,
after adding back the net finance cost in respect of the Group's
defined benefit pension scheme, and the exceptional items and the
taxation effect thereon where relevant. The calculations of basic
and diluted headline earnings per share are shown in note 7 of
these interim financial statements.
Certain statements in these interim financial statements are
forward looking. The terms 'expect', 'anticipate', 'should be',
'will be' and similar expressions identify forward looking
statements. Although the Board of Directors believes that the
expectations reflected in these forward looking statements are
reasonable, such statements are subject to a number of risks and
uncertainties and actual results and events could differ materially
from those expressed or implied by these forward looking
statements.
As at 1 June 2019 the Group adopted IFRS 16 'Leases' for the
first time. IFRS 16 replaces IAS 17 'Leases'. Under IFRS 16 a right
of use asset and lease liability are recognised for all leases
except 'low-value' and 'short-term' leases where lease payments are
recognised on a straight-line basis over the lease term. For the
Group, transition results in the recognition of almost all leases
on the balance sheet as a right of use asset, with a corresponding
lease liability.
The Group has elected to apply the simplified transition
approach. The comparative information for the periods ending 30
November 2018 and 31 May 2019 has not been restated and is
presented as previously reported, under IAS 17.
The Group currently leases both properties and vehicles under a
series of operating lease contracts which are impacted by the new
standard. These types of leases can no longer be recognised as
operating leases and have been brought onto the Group's balance
sheet from the date of adoption of the new standard. In applying
IFRS 16 for the first time the Group has elected to apply the
following recognition exemptions:
- Short-term leases (leases of shorter than 12 months and leases
with fewer than 12 months remaining) as at the date of adoption of
the new standard will not be within the scope of IFRS 16.
- Leases for which the asset is of low value will not be within the scope of IFRS 16.
In applying IFRS 16 for the first time the Group has also
elected to apply the following practical expedients:
- In determining whether existing contracts meet the definition
of a lease, the Group will not reassess those contracts previously
identified as leases and will not apply the standard to those
contracts not previously identified as leases.
- The use of a single discount rate applied to portfolios of
leases with similar characteristics.
On adoption of IFRS 16 the Group recognised lease liabilities in
relation to leases previously classified as 'operating leases'
under the principles of IAS 17 'Leases'. These liabilities have
been measured at the present value of the remaining lease payments
at 1 June 2019, discounted using the Group's incremental borrowing
rate on the current facility as of 1 June 2019. The weighted
average incremental borrowing rate applied to the lease liabilities
was 2%.
The associated right of use assets have been measured using the
approach set out in IFRS 16.C8(b)(ii), whereby right of use assets
are equal to the lease liability adjusted for accrued or prepaid
operating lease payments (GBPNil) at 1 June 2019. There were no
onerous lease contracts that would have required an adjustment to
the right of use assets at the date of initial application.
The overall impact of the adoption of IFRS 16 on the Group's
opening balance sheet is an increase in net assets of GBP16.2
million and an increase in net liabilities of GBP16.2 million.
Differences between the operating lease commitments disclosed at
31 May 2019 under IAS 17 discounted at the incremental borrowing
rate at 1 June 2019 and lease liabilities recognised at 1 June 2019
are explained below:
GBPm
-------------------------------------------------- --------- -----------
Undiscounted future minimum lease payments under
operating leases at 31 May 2019 24.2
Impact of discounting (8.0)
Add: finance lease liabilities recognised at
31 May 2019 0.2
Lease liabilities recognised at 1 June 2019 16.4
-------------------------------------------------------------- -----------
Of which are:
Current lease liabilities 2.0
Non-current lease liabilities 14.4
-------------------------------------------------------------- -----------
Lease liabilities recognised at 1 June 2019 16.4
-------------------------------------------------------------- -----------
The table below shows the split of the total right of use assets
and lease liabilities following the adoption of IFRS 16:
GBPm
--------------------------------------------- --------- -----------
Properties 1.0
Vehicles 15.2
NBV of assets previously held under finance
leases 0.4
--------------------------------------------------------- -----------
Total right of use assets 16.6
--------------------------------------------------------- -----------
Properties 1.0
Vehicles 15.2
Leases previously held under finance leases 0.2
Total lease liabilities 16.4
--------------------------------------------------------- -----------
During the half year to 30 November 2019, the application of
IFRS 16 resulted in an increase in operating profit in the
consolidated income statement of GBP0.1 million in comparison to
treatment under IAS 17, as operating lease payments under IAS 17
were replaced by a depreciation charge on right of use assets.
Profit before taxation reduced by GBP0.1 million with the inclusion
of GBP0.2 million of finance costs under the new standard.
The table below shows a reconciliation between profit under IAS
17 and the new standard, IFRS 16.
GBPm
------------------------------------------------------- --------- -----------
Operating lease costs under IAS 17 2.5
Less: depreciation on right of use assets recognised
under IFRS 16 (2.4)
Impact on operating profit for the half year
to 30 November 2019 0.1
Less: finance costs associated with lease liabilities
under IFRS 16 (0.2)
Impact on profit before taxation for the half
year to 30 November 2019 (0.1)
------------------------------------------------------------------- -----------
During the half year to 30 November 2019, the movement on the
right of use asset and lease liabilities was as follows:
GBPm
-------------------------------------------- --------- -----------
Right of use assets
Opening net book value 16.2
NBV of assets held under finance leases at
31 May 2019 0.4
New leases recognised 5.3
Depreciation (2.4)
Closing net book value 19.5
-------------------------------------------------------- -----------
GBPm
-------------------------------------------- --------- -----------
Lease liabilities
Opening liabilities 16.2
Finance lease liabilities recognised at 31
May 2019 0.2
New leases recognised 5.2
Lease payments (2.7)
Finance cost 0.2
Closing net book value 19.1
-------------------------------------------------------- -----------
3. Segment information
The chief operating decision-maker has been identified as the
Board of Directors ('the Board'). The Board reviews the Group's
internal reporting in order to assess performance and allocate
resources. The Board has determined that the operating segments,
based on these reports, are Fuels, Food and Feeds.
The Board considers the business from a product/services
perspective. In the Board's opinion, all of the Group's operations
are carried out in the same geographical segment, namely the
UK.
The nature of the products/services provided by the operating
segments are summarised below:
Fuels - sale and distribution of domestic heating, industrial and road fuels
Food - warehousing and distribution of clients' ambient grocery
and other products to supermarket and other retail distribution
centres
Feeds - manufacture and sale of animal feeds and other agricultural products
Segment information about the above businesses is presented
below.
The Board assesses the performance of the operating segments
based on a measure of headline operating profit. Finance income and
costs are not included in the segment results which are assessed by
the Board. Other information provided to the Board is measured in a
manner consistent with that in the financial statements.
Inter-segment transactions are entered into under the normal
commercial terms and conditions that would also be available to
unrelated third parties.
Segment assets exclude deferred income tax assets and cash and
cash equivalents. Segment liabilities exclude taxation, contingent
deferred consideration, borrowings and retirement benefit
obligations. Excluded items are part of the reconciliation to
consolidated total assets and liabilities.
Half year ended 30 Fuels Food Feeds Group
November 2019 Note GBPm GBPm GBPm GBPm
------------------------------- ----- ------ ------ ------ ------
Revenue
Total revenue 248.8 24.6 82.2 355.6
Inter-segment revenue (2.9) (0.2) (3.6) (6.7)
------------------------------- ----- ------ ------ ------ ------
Revenue 245.9 24.4 78.6 348.9
------------------------------- ----- ------ ------ ------ ------
Result
Headline operating
profit 1.4 1.4 0.7 3.5
Segment exceptional
item 4 (0.3) - - (0.3)
Amortisation of acquired
intangibles (0.1) - - (0.1)
Operating profit as
reported 3.1
Finance costs 5 (0.7)
------
Profit before taxation 2.4
Income tax expense 6 (0.5)
------------------------------- ----- ------ ------ ------ ------
Profit for the period 1.9
------------------------------- ----- ------ ------ ------ ------
Other information
Depreciation and amortisation 1.3 1.9 1.4 4.6
Fixed asset additions 0.4 0.9 1.0 2.3
------------------------------- ----- ------ ------ ------ ------
Fuels Food Feeds Group
As at 30 November 2019 GBPm GBPm GBPm GBPm
--------------------------------- ------- ------- ------- --------
Balance sheet
Assets
Segment assets 83.4 39.6 56.0 179.0
--------------------------------- ------- ------- -------
Deferred income tax assets 2.9
Current income tax assets 0.2
Cash and cash equivalents 1.8
--------------------------------- ------- ------- ------- --------
Consolidated total assets 183.9
--------------------------------- ------- ------- ------- --------
Liabilities
Segment liabilities (65.9) (13.4) (18.5) (97.8)
--------------------------------- ------- ------- -------
Current income tax liabilities -
Deferred income tax liabilities (3.6)
Borrowings (16.7)
Retirement benefit obligations (17.0)
--------------------------------- ------- ------- ------- --------
Consolidated total liabilities (135.1)
--------------------------------- ------- ------- ------- --------
Half year ended 30 Fuels Food Feeds Group
November 2018 Note GBPm GBPm GBPm GBPm
------------------------------- ----- ------ ------ ------ ------
Revenue
Total revenue 225.5 24.2 84.3 334.0
Inter-segment revenue (3.1) (0.4) - (3.5)
------------------------------- ----- ------ ------ ------ ------
Revenue 222.4 23.8 84.3 330.5
------------------------------- ----- ------ ------ ------ ------
Result
Headline operating
profit 0.9 1.0 0.7 2.6
Group exceptional item 4 (0.3)
Operating profit as
reported 2.3
Finance costs 5 (0.4)
------
Profit before taxation 1.9
Income tax expense 6 (0.5)
------------------------------- ----- ------ ------ ------ ------
Profit for the period 1.4
------------------------------- ----- ------ ------ ------ ------
Other information
Depreciation and amortisation 0.7 0.8 0.8 2.3
Fixed asset additions 0.1 0.3 0.7 1.3
------------------------------- ----- ------ ------ ------ ------
Fuels Food Feeds Group
As at 30 November 2018 GBPm GBPm GBPm GBPm
--------------------------------- ------- ------ ------- --------
Balance sheet
Assets
Segment assets 64.6 32.4 55.4 152.4
--------------------------------- ------- ------ -------
Deferred income tax assets 2.8
Cash and cash equivalents 1.0
--------------------------------- ------- ------ ------- --------
Consolidated total assets 156.2
--------------------------------- ------- ------ ------- --------
Liabilities
Segment liabilities (53.2) (5.3) (15.7) (74.2)
--------------------------------- ------- ------ -------
Current income tax liabilities (0.4)
Deferred income tax liabilities (3.5)
Borrowings (15.8)
Retirement benefit obligations (15.4)
--------------------------------- ------- ------ ------- --------
Consolidated total liabilities (109.3)
--------------------------------- ------- ------ ------- --------
Fuels Food Feeds Group
Year ended 31 May 2019 Note GBPm GBPm GBPm GBPm
------------------------------- ------- ------ ------ ------ ------
Revenue
Total revenue 449.5 48.4 180.4 678.3
Inter-segment revenue (6.5) (0.5) - (7.0)
------------------------------- ------- ------ ------ ------ ------
Revenue 443.0 47.9 180.4 671.3
------------------------------- ------- ------ ------ ------ ------
Result
Headline operating
profit 5.6 1.8 2.8 10.2
------------------------------- ------- ------ ------ ------
Segment exceptional
item 4 (0.2) - - (0.2)
Group exceptional item 4 (0.3)
Amortisation of acquired
intangibles (0.1) - - (0.1)
------
Operating profit as
reported 9.6
Finance costs 5 (0.9)
------
Profit before taxation 8.7
Income tax expense 6 (1.9)
------------------------------- ------- ------ ------ ------ ------
Profit for the year 6.8
------------------------------- ------- ------ ------ ------ ------
Other information
Depreciation and amortisation 1.4 1.6 1.7 4.7
Fixed asset additions 0.5 0.6 1.7 2.8
------------------------------- ------- ------ ------ ------ ------
Fuels Food Feeds Group
As at 31 May 2019 GBPm GBPm GBPm GBPm
--------------------------------- ------- ------ ------- -------
Balance sheet
Assets
Segment assets 61.2 30.3 51.7 143.2
Deferred income tax assets 3.1
Cash at bank and in hand 2.8
--------------------------------- ------- ------ ------- -------
Consolidated total assets 149.1
--------------------------------- ------- ------ ------- -------
Liabilities
Segment liabilities (46.4) (5.3) (15.0) (66.7)
--------------------------------- ------- ------ -------
Current income tax liabilities (1.1)
Deferred income tax liabilities (3.7)
Borrowings (13.2)
Retirement benefit obligations (17.3)
--------------------------------- ------- ------ ------- -------
Consolidated total liabilities (102.0)
--------------------------------- ------- ------ ----------------
4. Profit before taxation - exceptional items
Half year Half year Year
ended ended ended
30 November 30 November 31 May
2019 2018 2019
GBPm GBPm GBPm
--------------------------- ------------- ------------- --------
Acquisition-related costs 0.3 - 0.2
GMP equalisation - 0.3 0.3
--------------------------- ------------- ------------- --------
Exceptional costs 0.3 0.3 0.5
--------------------------- ------------- ------------- --------
Acquisition-related costs - The acquisition-related costs
comprise professional fees and other costs in relation to the two
acquisitions made during the period. Of the total cost, GBP0.3
million impacted cash in the period.
GMP equalisation - On 26 October 2018, the High Court issued a
judgement involving the Lloyds Banking Group defined benefit
pension schemes. The judgement concluded that the schemes should
equalise pension benefits for men and women in relation to
guaranteed minimum pension ('GMP') benefits. The judgement has
implications for many defined benefit schemes, including the NWF
Group Benefits Scheme.
We have worked with our actuarial advisors to understand the
implications of the High Court judgement for the NWF Group Benefits
Scheme and, as a result, recorded a non-cash GBP0.3 million pre-tax
exceptional expense in the year ended 31 May 2019 to reflect our
best estimate of the effect on our reported pension
liabilities.
The change in pension liabilities recognised in relation to GMP
equalisation involves estimation uncertainty. Whilst the financial
statements reflect the best estimate of the impact on pension
liabilities reflecting the information currently available, that
estimate reflects several assumptions. The Directors will continue
to monitor any further clarifications and consider the impact on
pension liabilities accordingly.
The Directors have made the judgement that the estimated effect
of GMP equalisation on the Group's pension liabilities is a past
service cost that should be reflected through the consolidated
income statement and that any subsequent change in the estimate of
that should be recognised in other comprehensive income. The
judgement is based on the fact that the reported pension
liabilities for the NWF Group Benefits Scheme did not previously
include any amount in respect of GMP equalisation.
5. Finance costs
Half year Half year Year
ended ended ended
30 November 30 November 31 May
2019 2018 2019
GBPm GBPm GBPm
--------------------------------------- ------------- ------------- --------
Interest on bank loans and overdrafts 0.3 0.2 0.5
Finance costs on lease liabilities 0.2 -
relating to IFRS 16 -
Net finance cost in respect of the
defined benefit pension scheme 0.2 0.2 0.4
--------------------------------------- ------------- ------------- --------
Total finance costs 0.7 0.4 0.9
--------------------------------------- ------------- ------------- --------
6. Income tax expense
The income tax expense for the half year ended 30 November 2019
is based upon management's best estimate of the weighted average
annual tax rate expected for the full financial year ending 31 May
2020 of 21.0% (H1 2018: 20.8%).
7. Earnings per share
The calculation of basic and diluted earnings per share is based
on the following data:
Half year Half year Year
ended ended ended
30 November 30 November 31 May
2019 2018 2019
GBPm GBPm GBPm
---------------------------------------- -------------- ------------- --------
Earnings
Earnings for the purposes of basic
and diluted earnings per share, being
profit for the period attributable
to equity shareholders 1.9 1.4 6.8
----------------------------------------- ------------- ------------- --------
Half year Half year Year
ended ended ended
30 November 30 November 31 May
2019 2018 2019
000s 000s 000s
--------------------------------------- ------------- ------------- --------
Number of shares
Weighted average number of shares
for the purposes of basic earnings
per share 48,750 48,720 48,735
Weighted average dilutive effect
of conditional share awards (note
9) - 30 15
--------------------------------------- ------------- ------------- --------
Weighted average number of shares
for the purposes of diluted earnings
per share 48,750 48,750 48,750
--------------------------------------- ------------- ------------- --------
The calculation of basic and diluted headline earnings per share
is based on the following data:
Half year Half year Year
ended ended ended
30 November 30 November 31 May
2019 2018 2019
GBPm GBPm GBPm
-------------------------------------- ------------- ------------- --------
Profit for the period attributable
to equity shareholders 1.9 1.4 6.8
Add back:
Net finance cost in respect of the
defined benefit pension scheme 0.2 0.2 0.4
Exceptional items 0.3 0.3 0.5
Amortisation of acquired intangibles 0.1 - 0.1
Tax effect of the above - - (0.1)
-------------------------------------- ------------- ------------- --------
Headline earnings 2.5 1.9 7.7
-------------------------------------- ------------- ------------- --------
8. Financial instruments
The Group's financial instruments comprise cash, bank
overdrafts, invoice discounting advances, obligations under hire
purchase agreements, commodity derivatives and various items such
as receivables and payables, which arise from its operations. All
financial instruments in 2019 and 2018 were denominated in
Sterling. There is no significant foreign exchange risk in respect
of these instruments.
The carrying amounts of all of the Group's financial instruments
are measured at amortised cost in the financial statements, with
the exception of derivative financial instruments being forward
supply contracts. Derivative financial instruments are measured at
fair value subsequent to initial recognition.
IFRS 13 (amended) 'Financial Instruments: Disclosures' requires
disclosure of financial instruments measured at fair value, grouped
into Levels 1 to 3 below, based on the degree to which the fair
value is observable:
-- Level 1 fair value measurements are those derived from
unadjusted quoted prices in active markets for identical assets or
liabilities;
-- Level 2 fair value measurements are those derived from
inputs, other than quoted prices included within Level 1 above,
that are observable for the asset or liability, either directly
(i.e. as prices) or indirectly (i.e. derived from prices); and
-- Level 3 fair value measurements are those derived from
valuation techniques that include inputs for the asset or liability
that are not based on observable market data (unobservable
inputs).
All of the Group's derivative financial instruments were
classified as Level 2 in the current and prior periods. There were
no transfers between levels in both the current and prior
periods.
The book and fair values of financial assets at 30 November 2019
are as follows:
30 November 30 November 31 May
2019 2018 2019
Total book and fair value GBPm GBPm GBPm
--------------------------------------- ------------ ------------ -------
Trade and other receivables 74.3 74.5 64.7
Financial assets carried at amortised
cost: cash and cash equivalents 1.8 1.0 2.8
Financial assets carried at fair
value: derivatives 0.2 0.2 0.2
--------------------------------------- ------------ ------------ -------
Financial assets 76.3 75.7 67.7
--------------------------------------- ------------ ------------ -------
The book and fair values of financial liabilities at 30 November
2019 are as follows:
30 November 30 November 31 May
2019 2018 2019
Total book and fair value GBPm GBPm GBPm
------------------------------------- ------------ ------------ -------
Trade and other payables 79.2 74.1 66.7
Lease liabilities repayable within 3.0 -
one year -
Financial liabilities carried
at amortised cost:
Hire purchase obligations repayable
within one year - - 0.2
82.2 74.1 66.9
------------------------------------- ------------ ------------ -------
Floating rate invoice discounting
advances 13.2 11.8 10.0
Revolving credit facility 3.0 4.0 3.0
Lease liabilities repayable after 16.1 -
one year -
Hire purchase obligations repayable - -
after one year -
32.3 15.8 13.0
------------------------------------- ------------ ------------ -------
Financial liabilities 114.5 89.9 79.9
------------------------------------- ------------ ------------ -------
9. Share capital
Number
of shares Total
000s GBPm
----------------------------------- ----------- ------
Allotted and fully paid: ordinary
shares of 25p each
Balance at 31 May 2018 48,660 12.2
Issue of shares (see below) 90 -
----------------------------------- ----------- ------
Balance at 30 November 2018 48,750 12.2
Issue of shares - -
----------------------------------- ----------- ------
Balance at 31 May 2019 48,750 12.2
Issue of shares (see below) - -
----------------------------------- ----------- ------
Balance at 30 November 2019 48,750 12.2
----------------------------------- ----------- ------
During the half year ended 30 November 2019, no shares (H1 2018:
89,920) with an aggregate nominal value of GBPNil (H1 2018:
GBP22,480) were issued under the Company's conditional Performance
Share Plan.
The maximum total number of ordinary shares that may vest in the
future in respect of conditional Performance Share Plan awards
outstanding at 30 November 2019 amounted to 1,441,604 (H1 2018:
1,216,945) shares. These shares will only be issued subject to
satisfying certain performance criteria.
10. Business combinations
On 10 July 2019, the Group acquired 100% of the share capital of
David Hermon Hodge Group Limited, a 75 million litre fuel
distributor based in the North West of England. The net
consideration for the acquisition was GBP3.0 million before
acquisition costs (being gross consideration of GBP4.5 million
adjusted for normalised working capital, and cash and debt like
items).
Details of the total consideration and the provisional fair
values of the assets and liabilities acquired are shown below:
Initial fair
value of
assets acquired
GBPm
-------------------------------------------- -----------------
Intangible assets - Goodwill 3.1
Intangible assets - Brand 0.1
Intangible assets - Customer relationships 0.1
Property, plant and equipment 1.1
Stock 0.4
Trade and other receivables 7.2
Cash 0.2
Borrowings (2.6)
Trade and other payables (6.0)
Lease liabilities (0.5)
Current income tax liability -
Deferred tax liability (0.1)
--------------------------------------------- -----------------
3.0
-------------------------------------------- -----------------
Provisional goodwill of GBP3.1 million arises from the
acquisition and is attributable to the acquired business and the
expected economies of scale from combining the operations of the
Group and the acquisition. None of the goodwill is expected to be
deductible for income tax purposes.
As the acquisition was made in the year, the above amounts are
provisional and subject to adjustment.
Net cash outflow arising on the acquisition:
GBPm
----------------------------------------------- ------
Total consideration - cash paid on completion (3.0)
Cash acquired 0.2
------------------------------------------------ ------
(2.8)
Acquisition-related costs (0.3)
(3.1)
----------------------------------------------- ------
Acquisition-related costs of GBP0.3 million have been charged to
the income statement (included within exceptional costs) in the
period ended 30 November 2019.
The following amounts have been recognised within the
consolidated income statement in respect of the acquisition made in
the year: revenue - GBP21.9 million, loss - GBP0.1 million.
Had the acquisition taken place at the start of the financial
year, the consolidated income statement would show: revenue -
GBP26.3 million, loss - GBP0.1 million.
On 15 October 2019, the Group acquired the trade and specified
assets of Caldo Oils Limited, a 5 million litre fuel distributor
based in the North West of England. The net consideration for the
acquisition was GBP0.4 million before acquisition costs.
Details of the total consideration and the provisional fair
values of the assets and liabilities acquired are shown below:
Initial fair
value of
assets acquired
GBPm
-------------------------------------------- -----------------
Intangible assets - Goodwill 0.2
Intangible assets - Customer relationships 0.2
0.4
-------------------------------------------- -----------------
Provisional goodwill of GBP0.4 million arises from the
acquisition and is attributable to the acquired business and the
expected economies of scale from combining the operations of the
Group and the acquisition. None of the goodwill is expected to be
deductible for income tax purposes.
As the acquisition was made in the year, the above amounts are
provisional and subject to adjustment.
Net cash outflow arising on the acquisition:
GBPm
------------------------------------ ------
Total consideration - cash paid on
completion (0.4)
Cash and cash equivalents acquired -
------------------------------------ ------
(0.4)
------------------------------------ ------
The following amounts have been recognised within the
consolidated income statement in respect of the acquisition made in
the year: revenue - GBP0.3 million, profit - GBPNil.
Had the acquisition taken place at the start of the financial
year, the consolidated income statement would show: revenue -
GBP0.9 million, profit - GBPNil.
11. Half year report
Copies of this Half Year Report are due to be sent to
shareholders on 6 February 2020. Further copies may be obtained
from the Company Secretary at NWF Group plc, Wardle, Nantwich,
Cheshire CW5 6BP, or from the Company's website at
www.nwf.co.uk.
12. Post balance sheet event
On 2 December 2019, in line with the Group's strategy, the Group
acquired 100% of the share capital of Ron Darch & Sons Co Ltd,
a 35 million litre fuel distributor based in Yeovil in Somerset,
with two depots and a complementary coal distribution business. The
consideration of GBP4.5 million was satisfied in cash. A fair value
exercise is underway and will be disclosed in the year end
report.
On 11 December 2019, the Group committed to enter a twelve year
lease (with a six year break clause) from 1 April 2020, to operate
a newly constructed 240,000ft(2) warehouse in Crewe. The estimated
financial impact on the balance sheet is an increase in right of
use assets of GBP7.0 million and an increase in lease liabilities
of GBP7.0 million. The effect on the income statement in respect of
the lease is expected to be an increase of GBP1.2 million in
depreciation and a GBP0.1 million increase in finance costs per
annum.
13. 2020 financial calendar
Interim dividend paid 6 May 2020
Financial year end 31 May 2020
Full year results announcement Early August 2020
Publication of Annual Report and Accounts Late August 2020
Annual General Meeting 24 September 2020
Final dividend paid Early December 2020
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
IR BRMPTMTTTBIM
(END) Dow Jones Newswires
January 28, 2020 02:00 ET (07:00 GMT)
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