Whiting ends 15 year reign at NWF on a profitable high
The chief executive of Cheshire-based farm supplies business NWF is to step down as the company reports ‘robust’ profits and a strategy of further acquisitions to grow the business further.
Describing the results as “significantly ahead of market expectations at the start of the financial year,” Richard Whiting ends his 15 years in charge with “all divisions performing strongly, successful acquisitions in line with our growth strategy, and refinancing to support continued development.”
He will be succeeded by Chris Belsham, currently Group Finance Director, who will be appointed Chief Executive upon Whiting’s retirement, and effective today, assumes the role of Chief Executive Designate. Belsham joined NWF in 2017, following an earlier career in corporate finance and accountancy.
The highlights of the annual results reported to the stock market this morning include record revenues which increased by 20.0% to £1,053.9 million (2022: £878.6 million) with revenue growth from higher commodity prices in Fuels and Feeds and an increase in activity levels in the Food division.
Headline operating profit was £21.0 million, a decrease of 3.7% (2022: £21.8 million). Operating profit increased 56.1% to £20.6 million (2022: £13.2 million)., with robust levels of profitability.
NWF made two acquisitions in the last twelve months. Sweetfuels (Oxfordshire) was acquired in December 2022 for £10.0 million (on a cash free/debt free basis with a normal level of working capital) and Geoff Boorman Fuels (Kent) for £2.6 million in July 2023.
“The acquisition pipeline of opportunities is healthy and this remains a focus for our development activity. We have a proven post-acquisition integration plan, retaining the local brand and customer facing parts of the business and centralising finance, IT, procurement and credit control,” Whiting said.
In other changes Katie Shortland will become Chief Financial Officer with effect from 2 October 2023. She is an experienced finance and business leader with extensive experience working in infrastructure, engineering and manufacturing; she is currently Finance and Transformation Director at Midland Expressway Limited, having held other senior finance positions at Meggitt PLC and Rolls-Royce plc.
Philip Acton’s tenure as non-executive Chair will be extended until the 2024 AGM, in order to oversee the transition and continue to facilitate effective succession planning.
Commenting on the changes, Chair, Philip Acton said: “I would like to thank Richard for his substantial contribution to the positive development of the Group over the last 15 years, leaving it well positioned for the next phase of its growth plans. During his time, NWF has significantly grown all three divisions through organic investment and acquisitions, whilst at the same time paying down all of its debt and raising the dividend in each of the last twelve years.
“I would like to congratulate Chris on his promotion which recognises the key role he has played in the Group’s performance and strategic direction since joining the Board in 2017, and welcome Katie to the business, as we look forward to her participation in the execution of the next phase of our growth strategy.”
Richard Whiting, said: “It has been a privilege to lead NWF through its last 15 years of successful growth. The business is now well placed with strong performances in all three divisions, a clear strategy on which progress is being made and the cash generative capability and funding to continue its development. I am delighted Chris will be my successor as CEO and I wish Chris and all the great team at NWF continued success in the years ahead.”
Analyst Adrian Kearsey at Panmure Gordon, a market maker for NWF, said in a research note: “NWF, the specialist distributor of fuel, ambient food and animal feed, delivered an impressive performance in FY23. In the period, all three divisions provided healthy performances and pre-tax profits were the second highest ever (£19.3m, which was £0.7m ahead of our expectations). Crucially, the path to further earnings growth is clear. M&A activity within the Fuel division is moving higher and the Food division is looking to open a third warehouse.”
He has recommended investors “BUY” NWF shares.
