NWF Group beats expectations but still falls short of prior year

NWF Group reported a “strong” set of results on Tuesday, ahead of original market expectations but behind the record prior year.

The AIM-traded firm said its revenue was 9.9% higher in the year ended 31 May at £671.3m, while its headline operating profit slipped 3.8% to £10.2m.

It said it saw revenue growth in all three of its divisions, which was the result of increased activity and higher commodity prices.

It said it saw “very strong” profit improvement in food, which improved its operational effectiveness with new customers.

The company’s headline profit before tax slid 4.9% to £9.7m, while its fully-diluted headline earnings per share were 5.4% lower at 15.8p.

NWF’s board declared a total dividend per share of 6.6p, up 4.8% on the total distribution in the 2018 financial year.

It said its balance sheet remained “strong”, with net debt standing at £10.4m, widening from £6.4m, with its net debt-to-EBITDA ratio standing at 0.7x, compared to 0.4x in the prior year.

The firm said the delivery of its strategy continued during the year, with three fuels acquisitions increasing its penetration and geographic reach.

Looking at its statutory results, NWF’s operating profit was down 9.4% at £9.6m, while its profit before tax fell 10.3% to £8.7m and its fully-diluted earnings per share slid 12.6% to 13.9p.

“NWF has delivered a result ahead of original market expectations and the business is continuing to develop in line with our strategy,” said chief executive Richard Whiting.

“The fuels division has performed well in spite of a mild winter and has completed three acquisitions adding 20% to its volumes.

“Food has outperformed management's expectations with new customers and employees working effectively in a business which has been at capacity throughout the year.”

Whiting said feeds had delivered a “stable result” in spite of variable market conditions.

“We are proposing an increased dividend and continue to see opportunity for further strategic and operational progress.

“Trading in the current financial year to date has been in line with our expectations.”