NWF Group bullish for full year, despite interim loss

NWF, the Nantwich-based food, fuel and feed distributor group, said it had delivered a strong first half performance, today, despite a £4.4m interim pre-tax loss.

Revenues in the six months to November 30, 2021, jumped 30.1% to £402.6m, but a £4.4m loss compared with a £2m pre-tax profit at the same point the previous year.

However, the group incurred exceptional costs of £8.4m, compared with £200,000, which it explained was due, among other items, to impairment costs, acquisition-related costs and cyber-related costs following a breach during a cyber incident on November 2, 2020.

The board has approved an interim dividend per share of 1.0p, the same as the previous year.

NWF said its results underpin the board’s confidence in delivering full year expectations, as it entered its seasonally busier second half period.

Both fuels and food showed year on year growth, which helped offset the weaker feeds division performance in the first half.

NWF said its financial position remains strong, with net debt halved year on year.

And it pointed out that, during the turmoil in the transport industry with a shortage of HGV drivers affecting many businesses, it maintaineed a stable workforce, including a full complement of drivers, while managing the prevailing supply chain difficulties effectively so it was able to continue to service customer needs uninterrupted.

Today’s announcement said the group has traded well since the period end and carries encouraging momentum into its seasonally busier second half.

Its fuels division achieved a headline operating profit of £3.6m, up from £1.9m a year previous, with a strong performance ahead of expectations and the prior year period. It enjoyed a short-term benefit from increased demand during the autumn fuel shortage, with NWF able to maintain full service from all 25 depots.

In food, the headline operating profit was £1.5m, against £500,000 in the prior year. The group said it was “a performance significantly ahead of prior year benefitting from enlarged capacity, improved efficiency in operations and stock in optimal locations”.

However, feeds incurred a headline operating loss of £0.4m, a turnaround from a £0.6m profit previously. As expected, the group said the performance was behind the prior year as a result of lower volumes in the period and the impact of significant commodity and cost inflation.

Chief executive, Richard Whiting, said: “We have delivered a very strong first half performance, despite volatile market demand and significant inflationary pressures, demonstrating a return on recent investments and the continued resilience of the group.

“The group has been successful in retaining its employees, including 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 starting our busier second half with good momentum. We continue to focus on the long term growth of the group, with a clear investment strategy which is supported by a strong financial position.”